Category: Interest Rates

We are increasing our 3, 6 & 12-month Term Deposits by 0.25% p.a. Effective 19th May 2023.
Information about the new rates is available here.

Following the Reserve Bank of Australia’s (RBA) May decision to raise the official cash rate by 0.25% p.a we have increased our variable home loan rates (excluding First Home Loans) by 0.25% p.a. effective on the 16th May 2023 for new business only.

For existing borrowers, effective 1 June 2023, we will be increasing all Variable home loans (Owner Occupied P&I and IO) and Personal Loans by 0.25% p.a. for existing home loan and personal loan borrowers, affecting repayments from 1 July 2023.

We would like to let you know that we have some exciting news regarding the decrease of our variable & fixed home loan rates which are effective on the 4th of May.

Variable Home Loan Rates

Effective 4th May 2023, members that have a variable home loan account will see the below changes:

• Decrease to the first home loan varaible rates for P&I and IO
• This is applicable for both LVR 80-90% and LVR over 90%

First Home Loan Owner Occupier P&I

• LVR 80-90% was 5.59% now 5.29%
• LVR over 90% was 6.19% now 5.39%

First Home Loan Owner Occupier IO

• LVR 80%-90% was 5.89% now 5.39%
• LVR over 90% was 5.89% now 6.49%

Fixed Home Loan Rates

Effective 4th May 2023, members that have a fixed home loan account will see the below changes:

• Decrease to 3 year fixed home loans by 0.25% for P&I only.

We’re really pleased to let you know that we’re increasing the interest rates on our U30 Super Charge savings account.

U30 Super Charge

Effective 1st May 2023, members that own a U30 Super Charge savings account will see a 0.05% rate increase.

• From 4.50%p.a  to  5.00%p.a

Members can achieve this rate across a maximum of three sub-accounts and a total of $30,000 when they elect to have their salary deposited to any Police Bank Account. To be eligible for this account, you have to be aged between 18-29 years old.

We’re really pleased to let you know that we’re increasing the interest rates on our Term Deposit accounts.

Term Deposit

Effective 6th April 2023, members that own a 3, 4 & 6 month Term Deposit account will see an increase to their rate.

We will be increasing the Term Deposit rate for our 3 & 6 month accounts by 0.25%.

Our 4 month Term Deposit accounts will be increasing by 1.60%.

We’re really pleased to let you know that we’re increasing the interest rates on our Bonus Saver and Retirement Plus accounts.

Bonus Saver

Effective 1st April 2023, members that own a Bonus Saver account will see an increase to their rate.

We will be increasing the Bonus Rate for our Bonus Saver account by 0.25%. The total available rate for Bonus Saver holders will be 3.55%.

Retirement Plus

Effective 1st April, we will be increasing the interest rate for Retirement Plus account holders by 0.25% bringing the total rate to 1.65%.

Following the Reserve Bank of Australia’s (RBA) decision to raise the cash rate by 0.25% to 3.60% on March 7th, we have been reviewing the balance between passing on the interest rate rise to our borrowers as well as our deposit holders.

Variable Home Loans:

Effective 23rd March 2023 ,we have increased the interest rates for new variable home loan borrowers by 0.25%.

Effective 1st April , we will be increasing the interest rate for existing home loan borrowers (both Owner Occupier and Investment) by 0.25%, affecting repayments from 1 May 2023.

Personal Loans

Effective March 23rd 2023, we have increased the variable interest rate for new personal loans by 0.25%.

Effective 1st April , we will be increasing the interest rate for existing variable personal loan borrowers by 0.25%, affecting repayments from 1 May 2023.

Term Deposits

Effective 23rd March 2023 , we have increased our 12 month Term Deposits, our I12 Term Deposit has increased to 4% p.a. and our I24 Term Deposit has increased to 3.95% p.a.

If your fixed-rate loan is about to expire, there are several things you can do to prepare. Often, making a plan early is the key to reducing the impact.

With interest rates increasing, many homeowners would be forgiven for feeling a bit anxious about the end of their fixed-rate term. After all, some borrowers could end up paying thousands of dollars a month more.

The good news is there are several ways to prepare for the transition to make it a smoother event. Here are some of our top tips.

1.Test your ability to pay more by putting extra money aside.

Using a mortgage calculator, look at how much extra you’re likely to be paying when the fixed term ends. Then, think about trying to put that amount aside in a high-interest savings account.

The process should indicate how much your budget will be tested – and how you might fare when the higher rate kicks in.

2. Rethink your spending.

If the extra money really challenges your weekly or monthly budget, think about whether adjustments can be made in other parts of life to ease the pressure. One popular budgeting strategy involves going through your monthly statement and highlighting every item you could cut out the following month.

‘Quick win’ ideas include reducing spending on takeaway food or eating out and cancelling subscriptions for a few months. If you’re a union member, you could also investigate what discounts you’re eligible for and see if you’re taking advantage of them.

3. Look at other fixed-rate loans.

When your fixed term ends, your loan will automatically be moved to a variable rate; however, you have the option to fix your loan again. Given how the official cash rate has moved in the past nine months, the new fixed rate you will be offered is likely to be higher than your last one.  

But if you’re tipping rates to rise further in the future and have enjoyed the certainty of a fixed loan, you could consider moving to another fixed term anyway. Police Bank offers two-year fixed rates at 5.59 per cent per annum – which is less than many of our competitors.

4. Speak to us about extra support.

If you’ve done the sums and feel like you’ll face financial hardship when your fixed term ends, have a chat to a Police Bank representative. We’re here to help and can come up with some further suggestions for you.

Remember, if you’re struggling, you can also speak to the National Debt Helpline on 1800 007 007.