Changes to Bendigo Bank interest rates

Bendigo Bank today announced an increase of 35 basis points in interest rates applying to its consumer and business variable rate lending – including housing.

The Residential Variable rate for Bendigo Bank’s new and existing standard variable home loans will move to 9.35% p.a. effective from this Thursday (13 March).

The standard variable retail home loan rate of Adelaide Bank, Bendigo’s merger partner, will move to 9.35% p.a. effective this Friday (14 March).

Chief Executive of Retail Banking, Mike Hirst, said that like other banks, Bendigo’s funding costs had continued to increase as the global credit crisis tightened further.

He said Bendigo continues to absorb some of the cost increase, but was unable to absorb it all.

“As competition increases for deposits, costs are increasing over and above changes to the official cash rate,” Mr Hirst said.

“It is because of this banks are increasing their variable lending rates above increases to the official cash rate.

“Bendigo Bank always endeavours to strike a balance in pricing that is fair and offers good value to depositors and borrowers, while enabling the company to provide its shareholders with a reasonable and fair return on their investment.”

The 35 basis point increase applies to all of Bendigo’s variable lending, including home, personal and business loans, overdraft and line-of-credit facilities, and credit cards.