The Co-operative Bank leads the market with floating rate cut
The Co-operative Bank has responded to today’s 0.50% Official Cash Rate cut by dropping its floating interest rate to 6.95% – a 0.70% cut that puts The Co-operative Bank’s floating rate at the lowest in the market.
Chief Executive Mark Wilkshire says The Co-operative Bank has seen an increasing number of customers opting for floating rates in recent months, with expectations that interest rates will keep falling through 2025.
“We encourage people to talk with their bank to help them to get the best value – the lowest short-term rate might not always be the best option, versus the certainty of locking in for a longer term. It is important to be aware that fixed rates today are based on a future outlook, so these typically factor in expected cuts before they occur,” Wilkshire says.
“We are seeing some customers wanting some flexibility while they work out what is the best option for their circumstances. A market leading floating rate is therefore helpful to our customers at this time.
“This gives customers flexibility and options to choose between fixed and floating in the decreasing rate environment.”
Wilkshire says The Co-operative Bank is also seeing more first home buyers come into the market as buying a first home becomes more affordable, with rates dropping and it still being a buyers’ market. First home buyers are now up to 50% of the bank’s new business.
“As a customer-owned bank, our core purpose is to grow together and share the gains with our customers. Home ownership is a key part of that, and in particular helping New Zealanders into their first homes. Some of the ways we are supporting first home buyers include participating in the Kāinga Ora First Home Loan Scheme, reducing our test rates to reflect changed market conditions, and offering the best possible fixed and floating interest rates that we can, to give customers more options and flexibility.”
The Co-operative Bank is also cutting some deposit rates from Friday, 29 November.
About The Co-operative Bank
The Co-operative Bank is the only bank in New Zealand to share its profits with its customers. We offer what you’d expect from a bank – accounts, lending, insurances and more but we’re truly different from other banks in that we’re owned by our customers and we were built on the idea of giving back. Since 2013 we have shared $22.5m with our customers in the form of rebates. We have a team of 400 people supporting 180,000 customers across New Zealand.
In 2024 The Co-operative Bank has been rated #1 in the Consumer NZ People’s Choice Awards in banking for the third year running.
We’re here to help New Zealanders bank better.