Bendigo defends slashing deposit rates

Banks are not lifting interest rates on savings accounts despite slugging borrowers with rate increases. Bendigo Bank dropped returns on its Classic account between .10 and .15 of a percentage point.

HSBC, which recently increased its variable home loan rate by .14 of a percentage point, cut ongoing returns on its Serious Saver account by .15 of a point, but made up the difference with a boost to the introductory rate.

In a statement, Bendigo Bank said interest rates on all products were based on its pricing principles, which aimed to ensure equity for borrowers, depositors, shareholders, staff, partners and the wider community.

Source: Herald Sun