Business depositors short changed by BankWest

BankWest will increase the interest rate on the TeleNet Saver introductory rate by only 20 points to 7.20 per cent, but will increase the deposit rate on its standard high yield deposit by the full 25 points of the RBA's rise in the cash rate (announced yesterday) to 6.75 per cent.

BankWest business accounts the Business TeleNet Saver and the AgriOne Account increased the full 25 points to 6.85 per cent and 6.00 per cent respectively, but the Business Bonus was short changed increasing only ten points to 6.10 per cent.

Most visible activity by banks changing, or announcing changes to, their interest rates on the same day as the RBA moved the cash rate was confined to those with, or seeking, price leadership in the deposit market.

RaboPlus, the online banking division of RaboBank, increased the bonus rate 15 points to 7.25 per cent, which is applicable to all funds until early 2008 before reverting back to the standard rate of 6.7 per cent.

Citibank is yet to make an interest rate announcement on the Citibank Plus account, which is currently offering a bonus rate of 7.25 per cent, with conditions.

Macquarie Bank, Rams and Resimac (and it's many mortgage managers) have all advertised interest rate increases on lending products, all effective from today.