Bendigo Bank interest rates

Bendigo Bank will increase a range of investment and lending interest rates in the wake of this week's rise in official cash rates.

Group Managing Director Rob Hunt said most lending rates, including the Bank's variable home loan rate, would increase by 0.50% p.a. in line with the cash rate.

"In some cases the Bank will absorb part of the increase."

Bendigo Bank's standard variable home loan rate will increase by 0.50% to 7.35% p.a. for new and existing borrowers, adding $12 a fortnight to the minimum repayment on an $80,000 loan.

Lending rates would increase from 28 February 2000.

Mr Hunt said Bendigo had also taken the opportunity to provide relief to many depositors.

Term deposit rates will increase by up to 0.85% p.a. from 17 February.

Other savings account rates would increase from 1 March.

"Many people, and especially pensioners and those dependent on income from their savings, have found the low interest rate environment difficult,"Mr Hunt said.

"We have therefore taken this opportunity to increase a range of investment rates to give savers the option of increasing their returns.

"In the case of our most popular savings account, the Classic, customers will see increases of between three-quarters to one per cent."