The Mutual Bank will make changes to a range of deposit and lending interest rates following the Reserve Bank of Australia’s decision on 3 February 2026 to increase the official cash rate by 0.25% to 3.85%.
Chief Member Officer, Matthew Dunnill, said The Mutual Bank continues to carefully balance the needs of both depositor and borrower Members.
“The Mutual Bank’s interest rates remain under regular review, to ensure we remain both competitive and sustainable,” Matthew said.
“We seek to balance the needs of both our depositor Members and borrower Members, by delivering consistently competitive rates across our range of products.”
Recent Term Deposit Increases
In anticipation of the RBA decision, The Mutual Bank recently increased several Term Deposit interest rates:
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Four-month Term Deposit: now 4.3% p.a.
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Twelve-month Term Deposit: now 4.25% p.a.
Savings Account Updates
Savings Account interest rates will increase by 0.25%, effective 1 March 2026.
Home Loan and Business Lending Changes
For existing borrowers:
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Variable Home Loan interest rates — including Owner Occupied, Investment, Business, and Commercial loans — will increase by 0.25% p.a. from 23 February 2026. Members will receive written notification outlining their new repayments.
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Fixed Loan interest rates will increase:
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Owner Occupied: +0.2%
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Investment & Business Loans: +0.25%
Effective 6 February 2026.
Support for Members Experiencing Financial Pressure
Matthew encouraged any Member feeling the impact of rising living costs to reach out early.
“Please reach out to your Lending Manager, visit a branch or phone our Hunter-based Contact Centre Team on 1300 688 825. Based on your circumstances, our team can assess your eligibility for a range of support options such as loan deferrals, interest-only periods, or other appropriate relief.”
Members can view the full list of The Mutual Bank’s current interest rates here.
About The Mutual Bank
The Mutual Bank is a customer-owned bank headquartered in East Maitland and has been helping people thrive since 1888. Our Budget Home Loan has proudly won the Mozo Experts Choice Home Loan Award in the Low-Cost Home Loan category for three consecutive years, as well as multiple WeMoney Awards, including Customer Owned Bank Lender of the Year for 2025.
