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Butterfield raises rates on loans, savings

Rate rises: Butterfield’s borrowers will pay more interest, but savers will be able to earn more on their money

Butterfield Bank is raising interest rates for both borrowers and savers.

The move comes after the US Federal Reserve raised its influential Fed Funds rate by a quarter of a percentage point this week.

Butterfield said today its base rate for Bermuda dollar residential mortgages and consumer loans will increase from 4.75 per cent to 5 per cent.

The base rate for Bermuda dollar corporate loans and US dollar loans will increase from 5 per cent to 5.25 per cent.

The rate increase on loans takes effect next Monday. The rate increase on residential mortgages will take effect on June 25, 2018.

Butterfield added that qualifying floating-rate mortgage holders may opt to maintain current payment amounts by extending mortgage terms up to seven years beyond the current maturity date.

While borrowers will pay more, savers will earn higher rewards.

“To provide customers with the opportunity to earn higher returns on Bermuda dollar and US dollar deposits, rates paid on fixed-term deposits with terms of 90 days or more will increase by up to 0.25 per cent,” Butterfield said in a statement.

“Changes will be effective March 26, 2018 and detailed deposit rate information will be available online and at Butterfield banking centres shortly.”