Westpac reduces loan rates, ups on savings

November 21, 2009 10:17:34 AM

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Westpac Banking Corporation has announced a major drop in home loan rates from Monday while pushing up its savings accounts rates following on from the Reserve Bank of Fiji’s call to commercial banks this month to increase their level of deposits with the central bank.

Westpac general manager John Cashmore said home loan rates would drop by up to 100 basis points to 7.75 percent per annum for one year fixed rates and variable rates lowered to 8.50 percent per annum for both personal and investment home loans. 

For savings accounts, the introductory rate of 6 percent for Westpac’s eSaver and Business Max-i Direct had been extended to 31 December 2009. The maximum limit of $250,000 would be removed.

“Following the Reserve Bank of Fiji’s call to increase the Statutory Deposit Requirement by two percent earlier this month, we've changed our rates so they're aligned to ensure that we maintain adequate levels of deposits for lending,” said Cashmore.

“This means that the higher savings rate is a great opportunity for individuals and businesses to earn a higher rate of return while having their funds at call. The Westpac eSaver and Business Max-i Direct accounts are the perfect instruments to help people and businesses save as there are no conditions attached to earning the high interest rate. It also encourages people to use Internet and telephone banking to better manage their money.”