Effective 22 February 2022, Íslandsbanki will change its interest rates to reflect the Central Bank of Iceland’s 9 February 2022 decision to raise the policy rate by 0.75 percentage points. At Ergo, the change in interest rates will take effect on 25 February.
The changes are as follows:
- Interest rates on non-indexed deposit accounts will increase by as much as 0.95 percentage points. Rates on mortgage savings accounts will rise the most.
- Interest rates on non-indexed variable-rate mortgage loans will increase by 0.50 percentage points, to 4.65%. No changes will be made to fixed interest rates on non-indexed mortgages. Furthermore, no changes will be made to fixed or variable interest rates on indexed mortgages.
- The non-indexed variable base interest rate will increase by 0.50 percentage points.
- Both Ergo’s non-indexed variable base interest rate and interest rates on motor vehicle loans and contracts will increase by 0.50 percentage points.
- Interest rates on individuals’ and businesses’ overdrafts will increase by 0.75 percentage points.
Changes to loans covered by the Act on Consumer Loans and the Act on Mortgage Lending to Consumers will take effect in accordance with the terms and conditions of the loans in question, and notifications of such changes.