Westpac has announced interest rate reductions to their savings accounts following last weeks RBNZ -25 basis points cut.
The Red Bank has cut savings rates by between -20 and -35 bps.
Their Business Online Saver has seen its rate reduced by -30 bps to 2.70% from 3.00%.
Their 32 Day Notice Saver rate has been reduced by -35 bps to 2.75% from 3.10%, although their on hold rate was reduced only -20 bps to 3.90%.
All other savings rates have been cut by -25 bps.
These changes continue Westpac's recent trend of holding on to some of the RBNZ policy cut.
The bank only reduced its main floating mortgage rate by -19 bps.
And earlier, Westpac reduced many term deposit rates to the lowest of the main banks.
Westpac's new Savings rate card is:
| Product / Account |
Current Rate
|
New Rate | Change |
|
Online Bonus Saver/PIE |
|
|
|
|
32 Day Notice Saver PIE: |
4.10% 3.10% |
3.90% 2.75% |
-0.20% -0.35% |
| Online Saver/PIE | 3.00% |
2.75% |
-0.25% |
| Business Online Saver |
3.00% |
2.70% |
-0.30% |
| 30 Day Term Deposit/Term PIE |
3.00% |
2.75% |
-0.25% |
| Simple Saver |
2.00% |
1.75% |
-0.25% |
| Earner: $5,000 - $50,000 $50,000 - $100,000 $100,000 + |
0.75% 1.75% 2.50% |
0.50% 1.50% 2.25% |
-0.25% -0.25% -0.25% |
10 Comments
These sorts of products are generally funded off the 90 day bank bill rate, itself directly influenced by the OCR change.
Do you mean The bank only reduced its main floating mortgage rate by -19 bps.?
If so, how does this square with the RBNZ claim?
Short term wholesale debt funding has been replaced with retail deposits and long-term wholesale debt funding. Retail deposits and long-term wholesale debt funding are both considered “stickier” and more stable sources of funding.There are a few reasons for this shift towards more stable sources. Read more page 2 of 10 (16/24)
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