Butterfield Adjust Rates Following Fed Increase

December 14, 2017

The Bank of Butterfield announced that, in step with yesterday’s 25 basis point increase in the US Federal Funds Rate, the Bank is adjusting its interest rates on loans and fixed-term deposits.

Deposit Rates

The Bank said, “To provide customers with the opportunity  to earn higher returns on Bermuda dollar and US dollar deposits, rates paid on six-month fixed-term deposits will increase by 0.35%, and rates paid on one, two, three, four and five-year fixed-term deposits will increase by 0.50%.

“Changes will be effective 14 December and detailed deposit rate information will be available online and at Butterfield Banking Centres from Monday, 18 December 2017.

Loans and Mortgages

“The base rate for Bermuda dollar residential mortgages and consumer loans will increase from 4.50% to 4.75%. The base rate for Bermuda dollar corporate loans and USD loans will increase from 4.75% to 5.00%.

“The rate increase on loans takes effect immediately. The rate increase on residential mortgages will take effect on 18 March 2018.

“Butterfield offers both fixed rate mortgages, under which rates can be locked in for specified terms, and floating rate mortgages on which payment amounts may change in step with base rate adjustments.

“With respect to the rate adjustments announced today, qualifying floating rate mortgage holders may opt to maintain current payment amounts by extending mortgage terms. For information regarding rates and payment terms, customers should contact the Bank’s Consumer Credit department on (441) 298 4799 or their relationship managers.

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