ME Bank: keeping interest rates low for union members
15 May 2012, 4:18pm
ME Bank has consistently delivered the highest rate cuts for customers when compared to the major banks. It has maintained a standard variable rate home loan for union members below that of the 'big four' banks for every month, of every year, since the bank formed in 2001.
While unable to fully pass on the most recent RBA cash rate reduction, Members Equity announced it will be reducing variable mortgage rates by 30 basis points.
ME at a glance
The Super Member Home Loan standard variable rate 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 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.
The needs of deposit customers have also been considered with the 6 month Super Members Term Deposit now one of the leading rates at 5.60%p.a., the First Home Saver Account at 4.60%p.a. and our combined savings and transaction account, InterestME Account at 3.00%p.a. for balances over $3000.
The RBA cash rate
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 to our home loan customers. We have been steadfast in keeping the full financial burden of increased funding costs off customers for as long as possible and over the last 18 months we have reduced our home loan standard variable rates more than the major banks. Between November 2010 and May 2012, the major banks reduced their rates on average by 0.35%p.a. while ME Bank delivered 0.55%p.a. in rate cuts.
How ME compares
The decision ensures members of industry super fund and unions will still receive one of the most competitive variable rates on the market – currently more than 50 basis points lower than that of the nearest major bank – combined with lower fees and better service.