Butterfield to raise savings, lending rates
Butterfield Bank today announced that it would raise lending rates and its fixed-term deposit rates for savers after the US Federal Reserve’s rate hike yesterday.
Clarien Bank said yesterday that it also plans to raise rates for savers and borrowers, with details to be released next month.
HSBC Bermuda said yesterday that any impact on rates would be communicated “through our usual channels” after the US central bank raised its key Fed Funds rate target by quarter of a percentage point.
Butterfield said: “To provide customers with the opportunity to earn higher returns on Bermuda dollar and US dollar deposits, rates paid on six-month fixed-term deposits will increase by 0.35 per cent, and rates paid on one, two, three, four and five-year fixed-term deposits will increase by 0.5 per cent.
“Changes will be effective December 14 and detailed deposit rate information will be available online and at Butterfield banking centres from Monday, December 18.”
Butterfield’s borrowers will see an increase in their interest payments in the coming months.
The bank said its base rate for Bermuda dollar residential mortgages and consumer loans will increase from 4.5 per cent to 4.75 per cent. The base rate for Bermuda dollar corporate loans and US dollar loans will increase from 4.75 per cent to 5 per cent.
The rate increase on loans takes effect immediately. The rate increase on residential mortgages will take effect on March 18, 2018.
Butterfield added: “With respect to the rate adjustments announced today, qualifying floating-rate mortgage holders may opt to maintain current payment amounts by extending mortgage terms.”
For more information on rates and payment terms, customers can contact Butterfield’s Consumer Credit department on 298-4799 or their relationship managers.
An HSBC Bermuda spokesperson said: “HSBC Bermuda considers multiple factors (including but not limited to, the Fed rates), in our ongoing reviews of the bank’s lending and savings rates. Any impact on the rates will be communicated through our usual channels.”
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