Term deposit rates trimmed at ASB

ASB has today cut a number of its term deposit rates.

The reductions are by between 25 and 50 basis points, which contrasted with other banks that have either left their term deposit rates on hold or have lifted them since the 50 bps cut in the Official Cash Rate on April 30. ASB has yet to cut its mortgage rates.

Notable changes were ASB's one year rate being cut by 50 bps to 4.00 per cent; its 18 month rate cut by 50 bps to 4.25 per cent; and its four year rate by 50 bps to 5.50 per cent. 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 per cent with interest paid at maturity.

ASB's new one year rate with interest paid quarterly is now below similar offers from some banks of between 4.25 per cent to 4.50 per cent. It's new five year rate (down 25 bps to 6.00 per cent) was brought in line with other banks' offers. ANZ and National banks lifted their 6 month, 1 year and 2 year rates last week.

- INTEREST.CO.NZ