ASB Lowers Rates Following OCR Decrease
Wednesday, 27 November 2024, 2:15 pm Press Release: ASB Bank
ASB is dropping interest rates across personal, business and rural lending by 0.50% following today’s decision by the RBNZ to lower the Official Cash Rate (OCR).
ASB’s Executive General Manager Business Banking Rebecca James says, “We have passed on every OCR cut since the Reserve Bank began easing in August.”
“More than 110,000 New Zealanders hold a floating home, business or rural loan with us, and today’s rate drops will make a meaningful difference to many individuals, households, business owners and farmers across the country. This year we’ve dropped variable rates by 125 basis points, translating to more than $170 million in savings annually back in customers’ pockets.”
ASB’s servicing test rate for home loans is dropping to 7.60%, effective Monday 2 December.
The OCR decrease is also being passed on to some of ASB’s savings rates. Savings On Call will move from 2.15% to 1.65% while ASB’s youth account, Headstart will shift from 4.15% to 3.65%.
“We’re aware that an OCR drop will impact our customers who rely on interest from savings accounts. We encourage them to call us so we can support them with options to get the best out of their money.”
Home Loan* Current Rates New Rates Rate Change Housing Variable 7.89% 7.39% - 0.50% Orbit 7.99% 7.49% - 0.50% Back My Build 5.44% 4.94% - 0.50%Advertisement - scroll to continue reading
Note - Back My Build applications are no longer open to new customers.
*These changes are effective from Thursday 28th November 2024 for new customers, and Thursday 5th December 2024 for current customers.
Business Loan*Current Rates New Rates Rate Change Business and Rural Floating Base Rate6.19%5.69%- 0.50%Business Base Rate13.02% 12.52% - 0.50% Rural Base Rate10.26% 9.76% - 0.50% Corporate Indicator Rate7.43% 6.93% - 0.50% Special Purpose Rate6.00%5.50%-0.50%* These changes are effective from Thursday 5th December 2024 for both new and existing customers.
Savings Band Current Rates New Rates Rate Change Savings On Call & ASB Cash Fund All Balances 2.15% 1.65% - 0.50% Savings Plus No Bonus 1.70% 1.20% - 0.50% Partial Bonus1.80%1.30%- 0.50% Full Bonus4.15%3.65%- 0.50%HeadstartAll Balances4.15%3.65%- 0.50%*These changes are effective from Thursday 5th December 2024 for new and existing customers
ASB has practical information for customers on the current interest rate environment available on its website as well support to help customers take control of their financial wellbeing and achieve their goals at its Financial Wellbeing Hub.
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