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ASB cuts term deposit rates, still has not cut mortgage rates following OCR cut (Update 1)
May 18th, 2009ASB has cut a number of its term deposit rates by between 25 and 50 basis points (bps). Short term and long term rates were cut, which contrasted with other banks that have either left their term deposit rates on hold or having lifted them since the 50 bps cut in the Official Cash Rate on April 30. (Update 1 includes Westpac and ANZ National comparisons.)
Notable changes were ASB’s one year rate (interest paid quarterly) being cut by 50 bps to 4.00%; its 18 month rate by 50 bps to 4.25%; and its four year rate by 50 bps to 5.50%. These rates are for term deposits greater than NZ$10,000 with interest paid quarterly. ASB’s new special rate is for a one year term deposit at 4.50% with interest paid at maturity.
See all the short term rates here, and the long term rates (one year and over) here.
ASB’s new one year rate with interest paid quarterly is now below similar offers from some banks between 4.25% to 4.50%. It’s new five year rate (down 25 bps to 6.00%) was brought in line with other banks’ offers.
As of yet, ASB has not cut any of its mortgage rates following the 50 bps cut in the Official Cash Rate by the Reserve Bank on April 30.
Westpac last week began offering a special one year rate of 4.55% (interest paid quarterly, minimum NZ$5,000), and a special 90 day rate (interest on maturity) at 4.30%. To qualify for these rates, a Westpac customer must donate a minimum NZ$5 to the Westpac Rescue Helicopter.
Also last week, ANZ National put up its 6 month, one, and two year term deposit rates, with the six month rate up 25 bps to 4.25% (compared with ASB’s recent cut in its 6 month rate of 25 bps to 3.75%).
Tags: ANZ National, ASB, OCR, Official Cash Rate, RBNZ, Reserve Bank of New Zealand, term deposit rates, Westpac
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May 18th, 2009 at 10:47 am
Savers are being shafted alright.
I really cannot see an end to this financial crisis. The world has been borrowing more than the savers have deposited for too long now.
Short term the Governments of the world are going to de leverage as much debt as they can by robbing off the savers. I reckon de leveraging is just finding ways to make the savers forgive the debt. In NZ a lot of de leveraging was done when finance companies failed. The savers lost billions there.
Then the borrowers started stealing off savers further when RBNZ lowered the interest rates the borrowers pay. Every dollar less interest borrowers have to pay is more money stolen off the savers.
The final theft will be massive inflation caused as a result of printing money.
The last theft from the savers will be when we have hyper inflation causing assets (flat screens, holidays, cars and I suppose houses) to rocket in cost. Then the savers money in the bank won’t be worth anything.
The problem is the total world debt is higher than the total the savers have invested. So long term we are all shafted. The savers will end up broke and the borrowers will still crash and burn.