6 - 12 September 2001

HSBC reduces base rate to 4.5%

HSBC Bank Malta’s interest rates, on all personal and commercial lending linked to its base rate, will be reduced by 0.25 per cent. This decision follows the announcement by the Central Bank of Malta of a cut in their rates of 0.25 per cent from 4.75 per cent to 4.50 per cent. HSBC have reduced their variable interest rates accordingly to reflect the lower rates.
All HSBC Home Loans customers on commercial terms will also enjoy a 0.25 per cent reduction in their interest rate. Any new customers taking out a Home Loan under the new special discounted rate scheme between 3 September 2001 and 31 December 2001
will now enjoy a lower effective variable rate of 5.25 per cent (being 0.75 per cent over base rate).
This special rate will apply on the first Lm25,000 for the first two years of the loan in respect of all Home Loans up to Lm35,000.
The rate of interest on outstanding credit card balances will remain unchanged.
HSBC Bank Malta also said it will be changing its rates of credit interest. The rate of interest paid on current accounts is being reduced by 0.50 per cent while the rate on savings accounts will be reduced by 0.25 per cent. The rates on new fixed deposits opened from the 5 September onwards will also be reduced by 0.25 per cent from the present rates. The other deposit rates that will change will be for those funds held on privatisation accounts and Bonus accounts which will also be reduced by 0.25 per cent.
The Bank said that credit interest rates on accounts of minors including Karus, Youth, Student and Graduate accounts will remain unchanged.
All changes came into effect yesterday.