Over the past few days, reductions to term deposit offer rates have been coming in thick and fast.
The latest has come from ANZ. This follows BNZ and Kiwibank yesterday. ASB and Westpac moved late last week.
Other banks have also been cutting rates.
This is now where we are at:
Challenger banks like The Cooperative Bank, RaboDirect and SBS Bank are still to announce their reductions and they all offer slightly better rates as at the time of publication.
Of the main banks, there is little to choose between their offers. Rates of 4% or higher are only available from BNZ and Kiwibank.
For the popular 6 month term, ASB and BNZ have the highest offer at 3.50% but this is only very marginally above their rivals.
For the next most popular term - 1 year - ANZ and BNZ are the main banks that have a 5 basis points advantage over their rivals.
Among the challenger banks, RaboDirect and SBS Bank have a small advantage over the other smaller institutions, but offer a +15 to +20 bps advantage over the main banks and are therefore worth consideration.
UDC also has a rate advantage over many banks, even their parent ANZ. But this may be fleeting; we are expecting a rate reduction from them very soon. You will need to be quick to capture the difference here.
How long these advantages will last is unknown however. The steady fall in wholesale rates will help depress term deposit offer rates, and that trend is not over yet.
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 carded, or advertised, term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.
The latest headline rate offers are in this table. Remember, these are not where rates will settle to, just where they are at 9:00am on Tuesday, September 15, 2015.
for a $25,000 deposit | 6 mths | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
3.45 | 3.65 | 3.60 | 3.65 | 3.70 | 3.80 | |
3.50 | 3.60 | 3.70 | 3.75 | 3.80 | 3.90 | |
3.50 | 3.65 | 3.70 | 3.75 | 3.80 | 4.00 | |
Kiwibank | 3.40 | 3.60 | 3.70 | 3.90 | 4.10 | |
3.40 | 3.55 | 3.70 | 3.75 | 3.80 | 3.90 | |
|
3.60 | 3.70 | 3.90 | 4.00 | 4.10 | |
3.50 | 3.70 | 3.75 | 3.80 | 3.85 | 4.00 | |
HSBC Premier | 3.10 | 3.30 | 3.40 | 3.50 | 3.60 | 3.70 |
3.70 | 3.80 | 3.85 | 3.90 | 4.05 | 4.25 | |
SBS Bank | 3.60 | 3.80 | 3.85 | 3.90 | 4.00 | |
3.55 | 3.70 | 3.80 | 3.90 | 4.00 | 4.20 | |
F&P Finance | 4.10 | 4.30 | 4.35 | 4.50 | 4.60 | 4.80 |
UDC | 3.60 | 3.75 | 3.80 | 3.85 | 3.95 | 4.25 |
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.