ASB Adjusts Rates Following OCR Increase

Friday, 2 December 2022, 10:01 am
Press Release: ASB Bank

ASB is adjusting interest rates following the Reserve Bank of New Zealand’s announcement that it is increasing the Official Cash Rate (OCR) by 0.75%.

The maximum interest rate on ASB’s Savings Plus deposit account will increase from 2.80% to 3.55% while the interest rate for Headstart will also increase from 2.80% to 3.55% and for Savings On Call from 1.30% to 2.05%.

To further support savers, ASB has also increased many of its term deposit rates, including its 36-month term deposit rate to a best in market 5.30%.

ASB’s Housing Variable rate will move from 7.35% to 7.99% while the ORBIT home loan rate will move from 7.45% to 8.09%. The Back My Build rate will shift from 5.04% to 5.54%.

“Following last week’s OCR change, many of our customers will benefit from higher deposit rates which will help those on fixed incomes with cost of living increases,” says ASB’s Executive General Manager Personal Banking Adam Boyd.

“We’ve also chosen not to pass through the full impact of the OCR increase for Back My Build loans. These customers are constructing new homes and have experienced rapid increases in building costs.”

“We’re very aware of the effect of higher mortgage rates on many household budgets. I encourage anyone who may be concerned to get in touch. Our team is available and standing by to provide guidance, advice and tools to support them.”

Savings Plus changes will apply from 1 January 2023. All other personal savings rates take effect from 14 December 2022. New variable rates are effective for all new housing loans from 7 December 2022 and 14 December 2022 for existing loans.

ASB rate changes:

Savings	Band	Current Rates	New Rates	Rate Change
Savings Plus	No Bonus**	0.80%	1.55%	+0.75%
	Partial Bonus**	0.90%	1.65%	+0.75%
	Full Bonus**	2.80%	3.55%	+0.75%
Headstart*	All Balances	2.80%	3.55%	+0.75%
Savings On Call & ASB Cash Fund*	All Balances	1.30%	2.05%	+0.75%

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*Effective from 14 December 2022 **Effective from 1 January 2023.

Home Loan*	Current Rates	New Rates	Rate Change
Housing Variable	7.35%	7.99%	+0.64%
Orbit	7.45%	8.09%	+0.64%
Back My Build	5.04%	5.54%	+0.50%

*Home loan rates effective from 7 December 2022 for new lending and 14 December 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)

($5000+)

Rate Change

9 months

4.35%

4.80%

+0.45%

36 months

5.10%

5.30%

+0.20%

*Term deposit rates effective from 2 December 2022.

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