ME Bank lowers standard variable rate to 6.44%p.a.

The rate cut ensures members of industry super fund and unions will still receive one of the most competitive rates on the market – currently more than 50 basis points lower than that of the nearest major bank – combined with lower fees and quality service.

The needs of deposit customers have also been considered with the 6 month Super Members Term Deposit now one of the leading rates at 5.65%p.a., the First Home Saver Account now at 4.60%p.a. and our combined savings and transaction account, InterestME Account at 3.00%p.a. for balances over $3000.

The continuing pressure of increased funding costs has meant ME Bank has been unable to pass on the full reduction in the RBA cash rate this month. “We have been steadfast in keeping the full financial burden of increased funding costs off customers for as long as possible,” said ME Bank CEO, Jamie McPhee.

“Over the last 18 months we have reduced our rates more than the major banks. Between November 2010 and May 2012, the major banks reduced their rates on average by 0.34%p.a. or less (excluding ANZ, yet to announce), while ME Bank delivered 0.55%p.a. in rate cuts,” said Mr McPhee.

“This has cost major bank customers with an average loan of $300,000 up to $70 per month, which over the life of their loan can add up to $21,000,” he added.

A snapshot of rate moves since November 2010 also helps highlight the unfair treatment of customers by the majors over the long term:

• In November 2010 the major banks all increased their rates more than the RBA official rate rise, whilst ME Bank kept rates steady;
• In November and December 2011 ME Bank once again delivered rate cuts in full to customers whilst some banks did not; and
• In February, March and April of this year, ME Bank kept rates steady whilst the major banks and some of the smaller lenders increased rates and many announced off-shoring of jobs to protect profits.

“Every month since we became a bank in 2001, ME Bank has provided industry super fund and union members with standard variable mortgage rates lower than those of the major banks. This has not been a short term pledge,” added Mr McPhee.

The Super Member Home Loan standard variable rate now drops from 6.74%p.a. to 6.44%p.a., providing industry super fund and union members with a lower standard variable rate than those of the major banks.

The Member Package variable rate now drops from 6.49%p.a. to 6.19%p.a., making it one of the best home loan packages in the market for customers borrowing up to $500,000.

The 3 year fixed rate on the Super Member Home Loan has been reduced to 5.99%p.a.

ME Bank is the only bank in Australia which is 100 percent owned by Australia’s leading industry super funds. ME Bank provides industry super fund, union and employer association members with a genuinely fairer banking alternative. For more information on ME Bank– please visit www.mebank.com.au