ASB Adjusts Savings Deposit Rates And Home Lending Rates Following OCR Increase

Monday, 22 August 2022, 9:29 am
Press Release: ASB Bank

ASB is making interest rate adjustments following the Reserve Bank of New Zealand’s announcement that it is increasing the Official Cash Rate (OCR) by 0.50%.

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 has also increased its six-month term deposit rate to 3.00% and nine-month term deposit rate to 3.50%.

ASB’s Housing Variable rate will move from 6.35% to 6.85% while the ORBIT home loan rate will move from 6.45% to 6.95%.

“We hope today’s changes to our deposit products will support customers with their savings goals,” says ASB’s Executive General Manager Personal Banking Adam Boyd. “We’re also cognisant that some customers may have questions about their borrowing off the back of this latest OCR adjustment and we’d really encourage them to reach out to our team for tailored guidance and advice on the best options available to them.”

Savings Plus bonus interest changes will be backdated to apply from 1 July 2022 while changes to the base rates will be from 1 September 2022. Term deposit rate changes took effect 19 August 2022. All other retail savings rates take effect from 1 September 2022. New variable rates are effective for all new housing loans from 25 August 2022 and 1 September 2022 for existing loans.

ASB rate changes:

Savings	Band	Current Rates	New Rates	Rate Change
Savings Plus*	No Bonus	0.05%	0.40%	+0.35%
	Partial Bonus	0.15%	0.50%	+0.35%
	Full Bonus	1.75%	2.25%	+0.50%
Headstart**	All Balances	1.75%	2.25%	+0.50%
Savings On Call**	All Balances	0.55%	0.80%	+0.25%

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*Quarterly bonus backdated to 1 July 2022. **Effective from 1 September 2022.

Home Loan*	Current Rates	New Rates	Rate Change
Housing Variable	6.35%	6.85%	+0.50%
Orbit	6.45%	6.95%	+0.50%
Back My Build	4.04%	4.54%	+0.50%

*Home loan rates effective from 25 August 2022 for new lending and 1 September 2022 for existing customers.

Note - Back My Build applications are no longer open to new customers.

Term deposits*

Current Rates (p.a)

($5,000+)

New Rates (p.a)

($5,000+)

Rate Change

6 months

2.85%

3.00%

+0.15%

9 months

3.30%

3.50%

+0.20%

*Term deposit rates effective from 19 August 2022.

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