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ASB Lowers Rates Following OCR Decrease
ASB is dropping interest rates across personal, business and rural lending following today’s decision by the RBNZ to decrease the Official Cash Rate (OCR) by 0.50%. The move comes hours after ASB lowered its fixed mortgage rates across several popular terms.
ASB’s variable home loan rate will fall by 50 basis points from 8.39% to 7.89%, while the Orbit rate drops from 8.49% to 7.99%. ASB’s Business and Rural Floating Base Rate is moving from 6.69% to 6.19%.
ASB’s Executive General Manager Personal Banking Adam Boyd says “We’re pleased to be announcing substantial cuts to our floating home loans, as well as our business and rural rates, in response to the OCR decrease. The various rate reductions we’ve announced today will impact more than 120,000 customers and we hope this will take some pressure off our customers. We do expect this downward OCR trend to continue into 2025 which will provide further relief.”
The OCR decrease is also being passed on to some of ASB’s savings rates. Savings On Call will move from 2.65% to 2.15% while ASB’s youth account, Headstart will shift from 4.75% to 4.15%.
| Home Loan* | Current Rates | New Rates | Rate Change |
| Housing Variable | 8.39% | 7.89% | - 0.50% |
| Orbit | 8.49% | 7.99% | - 0.50% |
| Back My Build | 5.94% | 5.44% | - 0.50% |
Note - Back My Build applications are no longer open to new customers.
*These changes are effective from 17 October 2024 for new customers, and 24 October 2024 for current customers.
| Business Loan* | Current Rates | New Rates | Rate Change |
| Business and Rural Floating Base Rate | 6.69% | 6.19% | - 0.50% |
| Business Base Rate | 13.52% | 13.02% | - 0.50% |
| Rural Base Rate | 10.76% | 10.26% | - 0.50% |
| Corporate Indicator Rate | 7.93% | 7.43% | - 0.50% |
| Special Purpose Rate | 6.50% | 6.00% | -0.50% |
* These changes are effective from 17 October 2024 for both new and existing customers.
| Savings | Band | Current Rates | New Rates | Rate Change |
| Savings On Call & ASB Cash Fund | All Balances | 2.65% | 2.15% | - 0.50% |
| Savings Plus | No Bonus | 2.30% | 1.70% | - 0.60% |
| Partial Bonus | 2.40% | 1.80% | - 0.60% | |
| Full Bonus | 4.75% | 4.15% | - 0.60% | |
| Headstart | All Balances | 4.75% | 4.15% | - 0.60% |
*These changes are effective from 24 October 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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In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.
ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.
ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.
We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.
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