ANZ New Zealand, the nation's largest bank, has trimmed the interest rates it pays out to savers on term deposits for all durations of nine months to three years.
A similar reduction applies to its one year term PIE offer.
The reductions announced are significant, lowering its offers below its main competitors.
For a term deposit of NZ$10,000 or greater, the reduction for a nine month term is 25 basis points, taking the rate down to 4.00% from 4.25%.
For one year, the reduction is 20 basis points, giving a new rate of 4.10% when the previous rate was 4.30%.
For 18 months, the new rate is 4.15%, a cut of 15 basis points from 4.30%.
For a two year and three year term, the bank has sliced 10 basis points from the old rates. The two year rate is now 4.20% (was 4.30%) and the three year rate is now 4.40% (was 4.50%).
There have been no changes to the four and five year rates which remain 4.75% and 5.00% respectively. And there have been no changes to any rates for terms up to six months.
ANZ's term PIE rate for one year was cut by a similar amount - to 4.10% from 4.30% - but investors using the PIE product will get an equivalent return of 4.47% if they are on the top 33% tax rate.
These reductions slip ANZ below the offers of its main rivals, as follows for a one year TD:
Smaller banks offer similar rates for the one year term, with the top rate offer being from RaboDirect. (For monthly interest however, the RaboDirect offer is lower at 4.31%.)
|SBS / HBS||5,000||4.30%|
Investors should be clear about when interest is earned and paid. This can range from 'monthly' through to 'at maturity', and for larger deposits and longer terms this can make a material difference to your actual earnings. Details on the codes used on our tables can he found here ».
The best way to work out the dollar amount of these aspects is to use our comprehensive term deposit calculator, here »