ANZ increases term deposit rates

ANZ has announced that it has upped the rates on its term deposit products.

In light of the Reserve Bank of Australia upping the base rate by 25 basis points, the institution said it decided to increase term deposit rates by 0.75 per cent per annum.

People looking to compare savings accounts may be pleased to hear that its ANZ Progress Saver will rise by 0.35 per cent, effective from December 7th.

Furthermore, the bank said it would raise its standard variable rate home loans by 0.35 per cent per year for new and existing customers, taking it to 6.66 per cent per annum.

Phil Chronican, ANZ chief executive officer, said the global financial crisis meant that funding costs remain high, despite some improvements in the economy.

"Although interest rates remain historically low, we’ve tried hard to find a reasonable balance between the commercial reality we face and the wider community interest in Australia’s economic recovery," he commented.

Commonwealth Bank also announced it intends to increase its rates this week.

With a 0.37 per cent per annum rise on variable rate home loans, customers can now expect to pay 6.61 per cent interest per year.

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