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NZ's largest bank drops its 3.60% eight month term deposit offer, replacing it with two slightly lower rates for terms either side

NZ's largest bank drops its 3.60% eight month term deposit offer, replacing it with two slightly lower rates for terms either side

ANZ today (Wednesday) changed three term deposit rates, shifting its fighting rate out slightly.

The move follows Kiwibank, which did something similar earlier in the week.

ANZ has canned its 8 month special of 3.60%, reverting to a standard rate of 3.15%.

It has raised its six month rate by +20 bps to 3.35%.

It has raised its nine month rate by +25 bps to 3.50%.

And it has raised its one year term deposit rate by +30 bps to 3.55%.

Similar changes to ANZ's PIE rates have also been made.

These changes follow Kiwibank's pivot away from a 4 month special to a 1 year fighting rate of 3.60% (3.55% for interest paid monthly).

They also come after the ANZ subsidiary UDC suffered a sharp cut in its credit rating to A- from the rate it used to share with the bank, AA-. UDC has not changed its rates yet to reflect the change in risk status.

After these ANZ and Kiwibank changes, the only major bank with a market-leading interest rate offer to savers is ASB, who with UDC still have a 3.65% eighteen month rate in the market.

It is the smaller banks who now have the interest rate benchmark rates, although they all do come with lower credit ratings than the main banks.

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.

Term PIE rates are here.

The latest headline rate offers are in this table. (Update: an earlier version had Westpac's one year rate in error.)

for a $25,000 deposit Rating 3/4 mths 5/6 mths 8/9 mths 1 yr 18 mths 2 yrs 3 yrs
                 
AA- 3.00 3.35 3.50 3.55 3.45 3.35 3.40
ASB AA- 3.00 3.20 3.25 3.20 3.65 3.25 3.35
AA- 3.00 3.50 3.60 3.25 3.30 3.35 3.40
Kiwibank A+ 3.20 3.15 3.20 3.25   3.25 3.40
Westpac AA- 3.40 3.35 3.10 3.40* 3.20 3.25 3.30
                 
BBB 2.95 3.60 3.30 3.25 3.60 3.30 3.35
Heartland Bank BBB 3.60 3.30 3.70 3.40 3.40 3.40 3.70
HSBC Premier AA- 2.55 2.80 2.90 2.90   2.90 2.95
RaboDirect A 2.85 3.50 3.35 3.40 3.40 3.45 3.55
RaboDirect BBB 2.75 3.55 3.30 3.70 3.60 3.35 3.40
A- 3.00 3.15 3.15 3.20 3.25 3.30 3.40
UDC A- 3.00 3.30 3.50 3.55 3.65 3.35 3.35
                 
Wholesale/swaps   2.14 2.13   2.09   2.12 2.19

Our unique term deposit calculator can help quantify what each offer will net you.

Term deposit rates

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1 Comments

For a 'locked in' risky 12month deposit of say $100,000 you have the potential to earn a whooping $2,900+ after tax! (about $8 aday)

sign me up....not. And knowing the 'actual' real risk due to NZ having no bank deposit guarantee scheme....

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