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Commonwealth Bank lifts deposit and loan interest rates

6 February 2008

The Commonwealth Bank today announced it will increase interest rates on a range of deposit, variable home loan and business loan accounts, reflecting recent increases in market interest rates and wholesale funding costs.

The deposit interest rate on the NetBank Saver and Business Online Saver accounts will increase by 0.25% pa, effective 8 February. The applicable interest rate for the NetBank Saver account is now 6.75% pa and Business Online Saver moves to 6.90% pa.

Owner occupied and investment home loan interest rates will increase as follows:


Old Rate % pa

New Rate % pa


Complete Home Loan Variable Rate


(8.79 Comparison Rate)*


(9.08 Comparison Rate)*



(Base Variable Rate)


(8.29 Comparison Rate)*


(8.59 Comparison Rate)*



Group Executive Retail Banking Services, Ross McEwan said, "As a result of increased funding costs experienced by all Australian banks since August 2007, we increased our standard variable rate by 0.10% pa on 9 January 2008. At that time we indicated that we would continue to absorb much of the increased cost in the belief that wholesale funding rates would moderate. Regrettably this has not happened."

"Given the continuing volatility in global markets, we are now of the view that rates in the wholesale funding market will remain high for a prolonged period. While this now takes the increases, outside of the official cash rate, to 0.15% pa, we are continuing to absorb a significant portion of the additional costs being incurred."

"We continue to offer our customers one of the lowest home loan interest rates available", Mr McEwan added.

The new variable home loan interest rates will be effective for new and existing customers from 8 February 2008.

Variable interest rates on business loans will also increase by 0.30% pa, effective 8 February 2008.


The comparison rate is calculated based on $150,000 over 25 years for a secured loan.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Note: Fees and charges may apply for changes to loan types and repayment options.


Media contacts:

Bryan Fitzgerald
General Manager Media
Telephone: 9378 2663