The Bank of N.T. Butterfield & Son Limited increased interest rates on loans by half a percentage point (0.5 per cent), absorbing a third of the rise of the 75-basis point increase in the target range of the US Federal Funds Rate.

The bank said the change in the US Federal Funds Rate had a significant impact on market interest rates and the cost of funding for the banking industry.

The change base rate applies to Bermuda dollar residential mortgages, consumer loans, corporate loans and USD loans, the bank said.

The rate increase on loans took effect today, Monday August 1. The rate increase for existing Bermuda residential mortgages is effective 90 days later.

Fixed-term deposit rates have also been increased this year as market rates have increased.

For the most up to date indicative rates, clients can visit butterfieldgroup.com/en-bm/banking/treasury/interest-rates.

Detailed information will also be available on Butterfield’s website and at Butterfield Banking Centres.