Suncorp today announced it would increase interest rates on a range of lending and deposit products, reflecting recent increase in wholesale funding costs and the official cash rate.
Home and small business interest rates
Effective Thursday, 13 March 2008, Suncorp's variable rates on home and small business loans will increase by 0.35% pa for new and existing customers.
Suncorp Group Executive Retail Banking, David Foster said the interest rate change was made to balance the needs of customers and shareholders.
"Suncorp has absorbed much of the increase in wholesale funding costs caused by world events since August 2007."
"Given the continuing volatility in global markets, we are of the view that rates in the wholesale funding market will remain high for some time. While this increase is more than the RBA's change, Suncorp continues to absorb part of the increased wholesale funding costs."
Suncorp's Back to Basics home loan, one of the most competitive 'basic' home loans available in the market will increase to 8.74% pa (8.79% pa Comparison Rate*). Suncorp's Standard Variable home loan will increase to 9.32%pa (9.47% pa Comparison Rate*).
"In light of this interest rate rise we would encourage customers to regularly review their financial position to ensure their current arrangement is appropriate. Customers who need assistance or financial advice should contact their nearest Suncorp branch or phone 13 11 55."
Deposit interest rates
In light of last week's increase in the official cash rate, Suncorp has increased interest rates on a number of deposit products.
Suncorp Cash Management Account holders, new and existing, will received the full 0.25% pa on their accounts (on amounts over $20,000), which was effective Thursday 6 March, 2008. Suncorp currently offers the highest rate on Cash Management Accounts for customer with over $500,000 invested.
In addition, Suncorp eOptions customers benefit from the new flexi-rate functionality offering market leading fixed deposit rates on amounts from $1. These rates are reviewed daily, passing on the benefit of market rate rises directly to customers.
Suncorp's business customers will also benefit from last week's rate rise with the interest rate on Suncorp's Business Investment Options Account increasing by 0.25% pa to 7.15% pa, effective Thursday, 13 March 2008.
*Based upon $150,000 over 25 years. WARNING: This comparison rate is true only for examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Term deposit rates will also increase in line with market changes from Friday, 14 March 2008. Suncorp has introduced two special rate term deposits of 8.00% for four months and 8.25% for 10 months on amounts over $25,000. The ten month rate is nor 0.80% higher than in February of this year.
Mr Foster said last week's rate rise was good news for both short and long-term investors.
"Savers and investors looking to security of a fixed terms investment and a fixed rate of return, with some of the market's leading rates on offer."
"We know that market volatility doesn't sit well with some customers and we are seeing some investors return to investing in cash. It's a low risk investment and the increased on our deposit products will no doubt make it very attractive."
For more information, analysts/investors should contact:Mark Ley - 07 3835 5639
Media enquiries should be directed to:Natasha Schmid – 07 3836 1219
12 March 2008