SBA adjusts savings deposit rates and home loan rates following OCR increase
ASB is making interest rate adjustments following the announcement by the Reserve Bank of New Zealand of a 0.50% increase in the official exchange rate (OCR).
The maximum interest rate on ASB’s Savings Plus deposit account will increase from 1.75% to 2.25%, while the interest rate for Headstart will increase from 1.75% to 2.25% and for Savings On Call from 0.55% to 0.80%.
To further support savers, ASB also increased its six-month deposit rate to 3.00% and its nine-month deposit rate to 3.50%.
ASB’s variable housing rate will drop from 6.35% to 6.85% while the ORBIT mortgage rate will drop from 6.45% to 6.95%.
“We hope today’s changes to our deposit products will help customers meet their savings goals,” said Adam Boyd, Executive Managing Director, Retail Banking at ASB. “We are also aware that some customers may have questions about their loan following this latest OCR adjustment and we really encourage them to contact our team for personal advice and guidance on the best options available to them. .”
Savings Plus bonus interest changes will be backdated to apply from July 1, 2022, while base rate changes will be from September 1, 2022. Time deposit rate changes have come into effect on August 19, 2022. All other retail savings rates come into effect on September 1, 2022. New variable rates are effective for all new mortgages from August 25, 2022 and September 1, 2022 for existing loans.
SBA Rate Changes:
|Savings||Bandaged||Current rates||New rates||Rate change|
|Savings Plus*||No bonuses||0.05%||0.40%||+0.35%|
|An advance**||All sales||1.75%||2.25%||+0.50%|
|On-call savings**||All sales||0.55%||0.80%||+0.25%|
*Quarterly bonus backdated to July 1, 2022. **Effective from September 1, 2022.
|Home loan*||Current rates||New rates||Rate change|
|Back My construction||4.04%||4.54%||+0.50%|
*Real estate loan rate in effect on August 25, 2022 for new loans and September 1, 2022 for existing customers.
Note – Back My Build apps are no longer open to new customers.
Current rates (pa)
New rates (pa)
*Term deposit rates in effect from August 19, 2022.
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