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A rise of four key term deposit rates by BNZ brings them more into line with other banks, but none are market leading. Cuts some key saver account rates

A rise of four key term deposit rates by BNZ brings them more into line with other banks, but none are market leading. Cuts some key saver account rates

This morning, BNZ has raised four of its term deposit rates.

The increases involve rates for 6 months, nine months twelve months and eighteen months.

While they improve BNZ's offers for these terms, none of these changes take them to market-leading positions.

BNZ's six month rate goes up by +20 bps to 4.30%. At this term, Kiwibank, the Co-operative Bank, and RaboDirect all have the highest rate at 4.50%.

BNZ's nine month rate has been raised by +10 bps to 4.35%. The Co-operative Bank, Heartland Bank, and RaboDirect all have higher rates at this term.

BNZ's one year rate is now 4.50%, up +20 bps. However, Kiwibank, the Co-operative Bank, SBS Bank and RaboDirect all have higher rates for one year.

BNZ's eighteen month rate has been raised by +10 bps to 4.60% and that is bettered now by all the aforementioned banks.

The BNZ changes are clearly just acknowledging that they had slipped off the pace for these key terms.

Update: At the same time, BNZ has cut a range of key savings account interest rates. It's On Call account has seen a rate drop of -10 bps to 3.15% from 3.25%. The same reduction to the same new rate levels apply for their Total Money credits for amounts over $100,000. BNZ's bonus saver product, Rapid Save, has taken the largest reduction with a new potential rate of 4.25%, down -15 bps from 4.40%.

Equivalent term PIE changes were also made at the same time; these rates embellish your after-tax return.

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 latest offers as follows:

for a $20,000 deposit 6 mths 1 yr 18 mths 2 yrs 3 yrs 5 yrs
             
4.10% 4.50% 4.75% 5.00% 5.25% 5.75%
ASB 4.15% 4.50% 4.50% 4.75% 5.00% 5.50%
4.30% 4.50% 4.60% 4.75% 5.00% 5.50%
Kiwibank 4.50% 4.60%   4.75% 5.00% 5.75%
Westpac 4.10% 4.30% 4.60% 4.75% 5.00% 5.50%
             
Co-op Bank 4.50% 4.60% 4.70% 4.85% 5.10%  
Heartland Bank 4.40% 4.50% 4.65% 4.75% 5.15% 5.70%
HSBC Premier 3.90% 4.15% 4.40% 4.65% 4.90% 5.25%
RaboDirect 4.50% 4.65% 4.75% 5.00% 5.25% 5.65%
SBS Bank 4.25% 4.60% 4.65% 4.85% 5.10%  
4.10% 4.50% 4.60% 4.80% 5.00% 5.75%

Term deposit rates

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