The LLL advises that effective 1 October 2017, the interest rate on at-call Savings Accounts has changed from 2.50% to 2.25% per annum.
The reduction in interest rate is in response to historically low interest rates in Australia, which have led commercial financial institutions to lower the interest rates they now offer on term deposits.
The LLL generates income to support the Lutheran Church of Australia – including its congregations, schools and aged care facilities – by investing funds in these term deposits. However, due to lower interest rates offered by commercial financial institutions, the LLL’s own deposit rate of 2.50% is no longer sustainable because the new funds we invest are not earning this rate.
The LLL thanks depositors for your understanding of this rate adjustment, which will help ensure that long-term financial support to the LCA can be maintained.
We also thank depositors for your ongoing support of the LLL through your LLL Savings Accounts, and thank God for the partnership this provides ‘together in mission’.
Graeme Huf Allen Kupke
Chairman Chief Executive Officer