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What the big four banks’ COVID-19 packages mean for households

What the big four banks’ COVID-19 packages mean for households

23 Mar, 2020 - 2 min read

There’s been a lot of news lately about how different services are responding to the COVID-19 crisis. It’s not unlikely that you may have missed information that affects you amongst all of the headlines.

Here’s what the big four banks’ different COVID-19 packages mean for households:

Announcement	CBA	Westpac	NAB	ANZ
Variable rate cut for new and existing customers	0%	0%	0%	0.15%
Defer loan payments for mortgage holders in financial difficulty for up to 6 months	yes	yes	yes	yes
Reduce fixed rates	yes	yes	yes	yes
Increase term deposits on at least one account	yes	yes	yes	no
Highest term deposit rate for everyday customers	1.70% for 12 months	1.70% for 12 months	1.75% for 10 months	1.05% for 12 months
Lowest fixed rate offered by bank	2.29%	2.19%	2.19%	2.19%

Some other measures:

Westpac: Offering over-65s an 8-month term deposit of 2.00%.
CBA: Customers paying extra on their home loan will have their repayments reduced to the minimum to free up cash.
CBA: Offering easier eligibility criteria for personal overdrafts.
NAB: Lowest fixed rate is for first home buyers only. Westpac’s lowest is for people with a deposit of 30% or more.

Not with one of the big four banks, or with another bank not mentioned? The RBA Rate Tracker offers live updates on which banks have announced rate cuts.

Facing financial difficulty? Here’s what you can do:

Call your bank. You won’t be alone in needing extra support at the moment. Let them know your situation and be aware they may ask for proof of financial hardship.
Worried about your home loan? The big four banks are supporting customers in hardship by waiving fees, allowing deferred loan payments (up to six months) and even extending loan terms to lower repayments.
The National Debt Hotline can also help: 1800 007 007.

Disclaimer

This article is over two years old, last updated on March 23, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.