ASB Cuts Interest Rates

Wednesday, 28 May 2025, 4:48 pm
Press Release: ASB Bank

ASB has responded to the RBNZ's OCR announcement today, and is reducing interest rates across personal, business and rural lending by up to 0.25%.

ASB’s Executive General Manager Personal Banking Adam Boyd says, “As the easing interest rate cycle continues, we are maintaining support for our customers with lower lending rates. Our variable loans are held by nearly 150,000 New Zealanders across personal, business and rural lending and these rates are the lowest they’ve been in more than two years.”

“We carefully consider the impact rate reductions have for all our customers. Today’s response to the OCR will bring relief to households and businesses while acknowledging the needs of our savers by not passing on the full 25 basis point cut to our savings products,” says Mr. Boyd.

ASB’s Housing Variable Rate will drop 20 basis points from 6.64% to 6.44%, while Orbit Variable will move from 6.74% to 6.54%. ASB’s Business Base Rate will drop 25 basis points from 11.77% to 11.52% while its Rural Base Rate will also drop by 0.25% from 9.01% to 8.76%.

In response to the OCR decrease, ASB is lowering some of its savings products, including Savings On Call and Headstart, by 20 basis points.

Home Loan*	Current Rates	New Rates	Rate Change
Housing Variable	6.64%	6.44%	- 0.20%
Orbit Variable	6.74%	6.54%	- 0.20%
Back My Build	4.19%	3.99%	- 0.20%

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

*These changes are effective from Wednesday 4thJune 2025 for new lending customers, and Friday 6thJune 2025 for existing lending customers.

Business Loan*	Current Rates	New Rates	Rate Change
Business and Rural Floating Base Rate	4.94%	4.69%	- 0.25%
Business Base Rate	11.77%	11.52%	- 0.25%
Rural Base Rate	9.01%	8.76%	- 0.25%
Corporate Indicator Rate	6.18%	5.93%	- 0.25%
Special Purpose Base Rate	4.75%	4.50%	- 0.25%

*These changes are effective from Thursday 5th June 2025 for both new and existing customers.

Savings	Band	Current Rates	New Rates	Rate Change
Savings On Call & ASB Cash Fund*	All Balances	0.90%	0.70%	- 0.20%
Savings Plus**	No Bonus	0.70%	0.50%	- 0.20%
	Partial Bonus	0.80%	0.60%	- 0.20%
	Full Bonus	2.90%	2.70%	- 0.20%
Headstart*	All Balances	2.90%	2.70%	- 0.20%

*These changes are effective from Friday 6thJune 2025 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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