HSBC Bank Malta has announced that, following the recent decision by the European Central Bank to reduce interest rates by 50 basis points, it has taken the decision to pass on the full rate reduction to its borrowing customers.

The bank’s lending base rate will be 2.5 per cent and its home loans base rate 2.25 per cent. This came into effect from 21 January, in line with the ECB decision.

The bank will also be reducing its deposit rates by an equivalent amount. However, the ordinary savings rate, and seven-day and one-month term deposits, are only being reduced by 25 basis points and not 50 basis points. This is more advantageous to customers and gives them added value.

Furthermore, there in no change to the 3.5 per cent interest rate on the attractive 15-month Advance Bonus Account that is currently on offer.

Interest on the Online Banking Account will be reduced by 50 basis points for balances less than €5,000 and 100 basis points for balances of €5,000 and over. The new rates for the Online Banking Account are still very attractive in the local market place.