Kiwibank savers to benefit from higher returns following OCR rise

Kiwibank has raised interest rates on a range of savings accounts as well as home lending following the first rise in the Official Cash Rate for seven years.

Variable lending rates have been increased by 25bps, but the rates remain well below those of the major banks following the market leading reset in June last year.

“We are pleased our home lending rates remain very competitive,” said Nicole Pervan, Kiwibank General Manager Product.

“We challenged the market last year by significantly lowering our variable rates and despite today’s OCR rise, we are still well below all the large Australian banks, underlining our commitment to helping Kiwi realise their home ownership goals."

The lending changes take effect for new customers on Monday 11 October and for existing customers on Monday 25 October.

Kiwibank is also raising a range of savings and term deposit rates.

“We know the low interest rate environment has been challenging for some customers who rely on returns from savings, so we hope this is good news for them,” said Mrs Pervan.

“Kiwibank continues to offer competitive rates so the changes we’re announcing give savers a range of attractive options. We’re really pleased to pass the full 25bps rise through to our Notice Saver 90 Day account which will increase from 1.00% to 1.25% and remains one of the highest in the market.”

The changes take effect on Friday 8 October for term deposits and on Monday 11 October for other savings accounts.

Interest rate changes

Savings

Effective Monday 11 October.

Product

Current rate p.a.

New rate p.a.

Change

Notice Saver 90 Day

1.00%

1.25%

+0.25%

Notice Saver 32 Day

0.40%

0.55%

+0.15%

Online Call

0.25%*

0.40%*

+0.15%

* Includes bonus interest

Term deposits

Effective Friday 8 October.

Product

Current rate p.a.

New rate p.a.

Change

120 days

0.55%

1.00%

+0.45%

6 months

1.15%

1.25%

+0.10%

1 year

1.35%

1.40%

+0.05%

3 years

1.70%

1.90%

+0.20%

4 years

1.90%

2.15%

+0.25%

5 years

2.00%

2.25%

+0.25%

Minimum $10k investment.

Lending

Effective for new customers Monday 11 October.

Effective for existing customers Monday 25 October.

Product

Current rate p.a.

New rate p.a.

Change

Variable Rate

3.75%

4.00%

+0.25%

Offset Rate

3.75%

4.00%

+0.25%

Revolving Rate

3.80%

4.05%

+0.25%