Landsbankinn changes deposit and lending rates and the new interest rate tariff enters into effect on Monday 2 December 2024. The main changes are as follows:
Lending rates
- Variable interest rates on non-indexed housing mortgages decrease by 0.50 percentage points (pp), to start at 10.00%.
- Three-year fixed interest rates on new non-indexed housing mortgages decrease by 0.35 pp, to start at 8.50%.
- Five-year fixed interest rates on new non-indexed housing mortgages decrease by 0.20 pp, to start at 8.35%.
- Prime interest rates on non-indexed loans decrease by 0.50 pp.
- Overdraft rates decrease by 0.50 pp.
Deposit rates
- Interest rates on non-indexed current accounts decrease by 0.25-0.50 pp.
- Interest rates on non-indexed savings account decrease by 0.25-0.50 pp.
- Interest rates on foreign currency accounts change in accordance with changes to policy rates and market rates for the relevant currency.
There are no changes to interest rates on inflation-indexed deposits or loans.
Alongside these interest rate changes, changes to Landsbankinn's Credit Rules enter into effect, including that the maximum loan term on new inflation-indexed housing mortgages will be 25 years. First-time buyers will continue to be able to take out 30-year mortgages. Further information about these changes is provided in a separate notice published to the Bank’s website.
These changes follow the decision of the Central Bank of Iceland on 20 November, when the CBI lowered its key interest rate by 0.50 pp. The interest rate changes also have regard for market rates and other financing terms of Landsbankinn.
Changes to interest on loans governed by the Act on Consumer Loans or the Act on Mortgage Lending to Consumers enter into effect in accordance with notifications sent to customers, in most cases after a period of 30 days. Changes to interest on payment accounts governed by the Act on Payment Services enter into effect with two months’ notice in accordance with the terms and conditions for such accounts and notifications to that effect.
Notification will be available under Electronic documents in online banking or Documents in Landsbankinn’s app.
Further information about these changes is provided in a separate notice published to the Bank’s website.
