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State owned bank changes term deposit rates before announcing any mortgage rate changes, following OCR hike

Posted in News

Kiwibank has announced increases to its term deposit offers.

These come before any announcement of mortgage rate changes by them following this morning's +0.25% hike in the RBNZ's official cash rate.

They have raised their 30 and 60 day term deposit rates by 15 bps to 3.00% from 2.85%.

They are pitching a new fighting rate at 4 months, targeting 4.20%, which is a 70 bps rise from the standard 3.50% they had for this term previously.

And they are raising their one year term deposit to 4.35%, up 15 bps from 4.20%.

At 4.35% pa, the one year Kiwibank offer is the best bank offer in the market at this time for this term.

All these new rates are effective on Monday, April 28, 2014 and are for interest at maturity.

ANZ also changed at-call savings account rates this morning, with their 'Serious Saver' bonus saver account rising to 4.25%.

Use our deposit calculator to figure exactly how much benefit each option is worth; you can assess the value of more or less frequent interest payment terms, and the PIE products, comparing two situations side by side.

All term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.

Term PIE rates are here.

This positions the Kiwibank offers as follows:

for a $20,000 deposit 6 mths 1 yr 18 mths 2 yrs 3 yrs 5 yrs
             
3.75% 4.10% 4.75% 5.00% 5.25% 5.75%
ASB 3.75% 4.10% 4.30% 4.60% 5.00% 5.50%
BNZ 3.75% 4.10% 4.30% 4.75% 5.00% 5.50%
Kiwibank 4.10% 4.35%   4.75% 5.00% 5.75%
Westpac 3.75% 4.00% 4.30% 4.75% 5.00% 5.50%
             
Co-op Bank 4.10% 4.25% 4.80% 5.05% 5.30%  
Heartland Bank 4.00% 4.25% 4.50% 4.75% 5.00% 5.50%
HSBC Premier 3.65% 3.80% 4.00% 4.10% 4.30% 4.60%
RaboDirect 4.10% 4.20% 4.75% 5.00% 5.25% 5.65%
3.80% 4.20% 4.40% 4.85% 5.10%  
TSB Bank 3.80% 4.10% 4.50% 4.75% 5.00% 5.75%

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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2 Comments

These changes are window

These changes are window dressing.  1 year rate up 15bps - that's it!
What about the 6 month rate?  What about Notice Saver rates?  ANZ lifts it's savings rate by a full 25bps.
According to your graph above 1 year TD rates have risen 10bps on average over the last 6 months while 1 year fixed home loan rates have risen 50bps on average, with 1 year swaps up around 70bps.
 

Why would i go for their

Why would i go for their 4month "fighting rate" of 4.35, when i can get that from co-op in an on call account?