AMP Bank will reduce interest rates across all variable rate home loans by 0.20% p.a. and up to 0.53% p.a. for two and three-year fixed rate home loans, effective 22 July.

This follows a 0.25% p.a. reduction in all variable rate home loans in June.

AMP Bank Chief Executive Sally Bruce said taking into account both variable rate decreases, customers will see their minimum monthly repayments reduce by $126 on a $500,000 home loan. This represents an annual saving of $1,512 (based on an interest rate of 3.79% p.a. decreasing to 3.34% p.a.).

“To support Australian savers, AMP Bank will reduce the base rate of its flag-ship savings offer, the AMP Saver Account, by only 0.20% p.a., effective 15 July, and will also retain our competitive 2.75% p.a. introductory rate on this product for new and existing customers,” Ms Bruce said.

“We are managing our business in a very active market and decisions like this are considered carefully and thoroughly.

“We remain committed to providing competitive rates for our new and existing customers and today’s decision has been influenced by a continued elevation in costs as well as a desire to balance the interests of home owners and savers.”

For more information customers can call 13 30 30 or visit: www.amp.com.au/ratechanges