What Happens When Interest Rates Rise?

In the last update, SelfWealth had $646,000,000 of client cash in their bank accounts earning interest for the company.

The RBA is expected to raise interest rates at some point in the near future. When this happens, ANZ should pass on these increases in full. For every 25 basis points that the RBA raises, the company will earn around $1.6 million of extra revenue per year (based on current figures). That's for just one rate rise.

The RBA interest rate is at an extraordinary low 0.1% at the moment, due to COVID. As things return to normal we should see the interest rate return to normal too, which is something like 1.5%. If this was to happen over the next few years, SelfWealth could earn $9 million per year of extra revenue, just on the interest! (again, based only on current figures)

https://www.abc.net.au/news/2022-02-11/rba-governor-philip-lowe-inflation-interest-rates/100822078