On Tuesday the Reserve Bank made its eighth consecutive cash rate increase, bringing it to a decade-high 3.10%, and the major banks took about three hours to announce home loan rate hikes.
They made these announcements largely after 5pm AEDT when a lot of people had clocked off for the day.
Across the board, it was consistently a 25 basis point hike for variable-rate home loans, yet the story was mixed for savings accounts.
NAB
NAB announced 25 basis point hikes for variable-rate home loans, yet said its savings rates are "constantly under review".
In May, its base variable rate for owner occupiers was 3.45% p.a. (3.49% p.a. comparison rate*) while its Reward Saver rate was a maximum of 0.50% p.a. if bonus criteria is met - a gulf of 195 basis points.
Today its base variable rate for owner occupiers is 6.20% p.a. (6.24% p.a. comparison rate*) while its Reward Saver rate is a maximum of 2.75% p.a. if bonus criteria is met.
This is a gulf of 345 basis points.
NAB maintains it has made 45 savings rate changes since 1 May, yet the pace of change has not kept up with home loans.
ANZ
ANZ announced a 25 basis point increase to variable-rate home loans, yet did not mention any increases to savings products.
In mid-May the owner occupier index rate was 4.64% p.a. (4.64% p.a. comparison rate*), while the Progress Saver rate was up to 0.40% p.a. if bonus criteria was met.
This is a gulf of 424 basis points.
Today the same index rate is 7.14% p.a. (7.14% p.a. comparison rate*), while the Progress Saver rate is 2.25% p.a. if bonus criteria is met.
This represents a gulf of 489 basis points.
That said, ANZ's 'ANZ Plus' savings account offering is 3.50% p.a. which is one of the highest unconditional savings account rates in the market.
Where are customers getting a fair shake?
CBA
On Tuesday Australia's largest bank announced a 25 basis point rise to variable-rate home loans, and increases of up to 60 basis points to savings products.
In May, the Goal Saver ongoing rate was 0.20% p.a. while the owner occupier variable-rate home loan offer with 70% LVR was 2.44% p.a. (2.45% p.a. comparison rate*). So, a gulf of 224 basis points.
Compare that today and the same products are 2.70% p.a. and 4.60% p.a. (5.00% p.a. comparison rate*) - a gulf of 190 basis points
Westpac
Westpac announced it will pass on a 25 basis point increase to home loan rates, while announcing hikes of up to 35 basis points to savings accounts.
In April, the Westpac Life maximum savings rate was 0.25% p.a. if bonus criteria was met, while the Rocket Repay home loan rate with 80% LVR was 4.58% p.a. (4.72% p.a. comparison rate*). This is a gulf of 433 basis points.
Compare that to today, and the rates are 3.50% p.a. and 7.33% p.a. (7.46% p.a. comparison rate*) - a gulf of 383 basis points.
Macquarie
By what many consider to be the fifth major bank in Australia, Macquarie has grown its deposit sizes substantially, adding $9 billion in customer deposits on its books between July and October, according to APRA data.
This might be because its four-month intro savings rate of 4.25% p.a. is one of the most competitive in the market - so is its ongoing 3.70% p.a. rate (effective 16 December and announced after the RBA's December move).
In mid-May the basic home loan rate with 80% LVR was 2.49% p.a. (2.49% p.a. comparison rate*) and its ongoing savings rate was 1.00% p.a. - a gulf of 149 basis points.
Now its basic home loan rate with 80% LVR is 4.59% p.a. (4.61% p.a. comparison rate*), and its ongoing savings rate is currently 3.45% p.a. This is a gulf of 114 basis points.
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