Suncorp Metway to pass along rate increase
Queensland's biggest financial institution, Suncorp Metway, is to lift term deposit rates as well as home loan rates, following the Reserve Bank decision to increase official interest rates by 0.25 percentage points.
While increases in home loan rates will be restricted to the RBA's 0.25% rise, term deposit rates will be increased by as much as 0.4%, providing significant benefits for investors.
Suncorp Metway will increase the interest rate for six-month and 12-month term deposits over $20,000 by 0.3 percentage points, to 5.4% and 5.8% respectively.
Two-year term deposits of $20,000 or more will increase 0.4 percentage points to 6%.
"These increases ensure we retain our leadership position in term deposits," said General Manager of Retail Banking, Mr David Gration.
The new term deposit rates will be effective from November 10.
The move to increase home loan rates brings Suncorp Metway into line with the major banks that have put rates up in response to the RBA's announcement last week.
Mr Gration said Suncorp Metway's variable rates on owner occupied, Ready Access, Professional Package, Asset Line and Back to Basics loans would increase by 0.25 percentage points. The basic variable rate will therefore rise to 6.35%, the standard variable to 6.8%, and the introductory discounted variable home loan rate to 5.85%.
These new rates are effective for new customers from Wednesday, November 10. For existing customers, the new rates will apply from Friday November 19, except for the Professional Package rates, which will increase from December 13.
There will be no increase to the variable rate which applies to investment loans, which will remain at 6.95%.
"The investment market is very important to us, and our decision not to lift rates in this category demonstrates our commitment to grow the business." he said.
9 November 1999
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For further information contact: Joe Dowling, Head of Public Affairs and Investor Relations, Ph: (07) 3835 5769
