Dear Members,

The Reserve Bank of Australia announced on the 1st of December 2009 that the Official Interest Rate would increase by a further 0.25%p.a.The Credit Union has now reviewed all Loans and Savings Interest Rates.

The increase to mortgage loans, fixed term deposits and savings accounts will be effective the 1st of January 2010. A copy of our Interest Rate Schedule dated 1st January 2010 is available under the Rates/Fees section of this web page.

The increases in the Fixed Term Deposits are significantly more than the 0.25% announced by the RBA. These increases are critical to ensure the Credit Union deposits are not lost and therefore funds remain to service lending requirements from Members.

A direct result of this action is an increase in mortgage loan rates above the RBA increase. This has also been the case with most lenders in the market.

We will continue to monitor market rate movements to ensure maximum benefit to both our investing and borrowing members.

The next Reserve Bank meeting is planned for the 2nd February 2010. Thank you to all members for your continued support.

JIM O'CONNELL

GENERAL MANAGER