Butterfield Adjusts Rates Following Fed Increase
The Bank of N.T. Butterfield announced that, in step with the recent 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 fixed-term deposits with terms of 90 days or more will increase by up to 0.25%. Changes will be effective 26 March 2018 and detailed deposit rate information will be available online and at Butterfield Banking Centres shortly.
Loans and Mortgages
“The base rate for Bermuda dollar residential mortgages and consumer loans will increase from 4.75% to 5.00%. The base rate for Bermuda dollar corporate loans and USD loans will increase from 5.00% to 5.25%.
“The rate increase on loans takes effect 26 March 2018. The rate increase on residential mortgages will take effect on 25 June 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 up to seven years beyond the current maturity date. For information regarding rates and payment terms, customers should contact the Bank’s Consumer Credit department on [441] 298 4799 or their relationship managers.”
So I lend you my money via a savings account and you ‘reward’ me with up to one half of one percent in interest and then turn around and lend my money to Joe Mortgage at 5%! The Mafia is lagging behind the bankers when it comes to 9nterest rates!
This will be the fourth rate increase since March, 2017.
They are not helping those Bermudians with mortgages.
15 Dec 2017 0.25 4.50% 15 Dec 2017 0.25 4.50%
16 Jun 2017 0.25 4.25% 16 Jun 2017 0.25 4.25%
17 Mar 2017 0.25 4.00% 17 Mar 2017 0.25 4.00%
14 Dec 2016 0.25 3.75% 15 Dec 2016 0.25 3.75%
Unless they got a fixed rate, which is available.