ANZ changes rates for investors, decreasing some, and raising others but by a much smaller change than for borrowers. However ANZ remains remains very competitive compared with its main rivals

At the same time ANZ raised most of its mortgage rates (including its floating rate), it also announced a range of term deposit rate changes.

There were no changes this time to the bank's 'at call' savings products, and some short term deposit rates were reduced.

Most other changes were modest increases. (ANZ's PIE rates rose by the same amounts at the same time.)

The full change activity is recorded in our rate tables here and here. But as the summary below shows, ANZ's changes affected term investors at a lower quantum than the impact on borrowers.

All term deposit changes are effective Thursday, January 19, 2017.

As at September 30, 2016, ANZ had almost $40 bln in customer term deposits, another $42 bln in "on demand and short term deposits", and a further $7.8 bln in deposits that don't earn any interest. All up (and excluding UDC), ANZ has $90 bln in Total Customer Deposits.

A summary setting out the ANZ changes for the same time periods reveals this:

Term deposits Today's
change
  Home Loans Today's
change
  %     %
At call n.c.   Floating +0.10
30 days - 0.15      
3 months n.c.      
6 months - 0.05   6 months n.c.
9 months n.c.      
1 year n.c.   1 year +0.20
18 months n.c.   18 months +0.06
2 years +0.10   2 years +0.16
3 years +0.10   3 years +0.20
4 years +0.10   4 years +0.25
5 years +0.10   5 years +0.25

Despite the ANZ term deposit changes being significantly less that the mortgage rate changes, the new ANZ TD rates leave the bank positioned well against its main rivals, and that is true for most term options.

ANZ offers the highest carded term deposit rates for all terms by the main banks except for three months and one year, where Westpac has an edge.

For higher rates, you need to asses the offers of institutions with a lower credit rating.

As we have earlier noted, savers may wish to think through the wisdom of locking up of funds for longer terms in what seems to be a turning rate environment. This situation should have savers thinking through the risk/reward scenarios.

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.

for a $25,000 deposit Rating 3/4 mths 5/6 mths 8/9 mths 1 yr 18 mths 2 yrs 3 yrs
Main banks                
AA- 3.00 3.30 3.60 3.35 3.60 3.80 3.90
ASB AA- 3.00 3.20 3.60 3.20 3.50 3.65 3.80
AA- 3.00 3.30 3.65 3.25 3.60 3.75 3.80
Kiwibank A+ 3.00 3.10 3.20 3.35   3.40 3.60
Westpac AA- 3.15 3.20 3.10 3.40 3.20 3.70 3.50
Other banks                
BBB 2.95 3.40 3.50 3.60 3.65 3.75 3.85
Heartland Bank BBB 3.10 3.30 3.70 3.40 3.40 3.40 3.70
HSBC Premier AA- 2.50 2.80 2.90 2.90   2.90 2.95
ICBC A 3.05 3.35 3.65 3.45 3.65 3.75 3.85
RaboDirect A 2.85 3.40 3.35 3.40 3.40 3.45 3.80
RaboDirect BBB 2.75 3.55 3.60 3.60 3.70 3.80 4.00
A- 3.00 3.30 3.75 3.50 3.70 3.80 4.00
Selected fincos                
F&P Finance BB* 3.10 3.80 4.00 4.10 4.15 4.25 4.35
RaboDirect BBB 3.40 3.95 4.15 4.40 4.80 4.95 5.15
RaboDirect A- 3.00 3.50 3.75 3.80 3.65 3.60 3.55
  * = the only credit rating in this review that is not investment grade.  

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

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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6 Comments

If you phone the banks and ask for a deal, they can sometime give you a better term deposit rate than those advertised. I got 3.75% for 6 months with one bank.

Why do ANZ rates not appear in the table? I think this is a frequent, if not an habitual, omission.

I was told on enquiring here that it is because I use an ad blocker. Didn't make sense for one bank to be affected by this and not the others.

Rabo bank rang me on our anniversary weekend (not a business day here) telling me it is a legal requirement to tell them my occupation for their records. I have some 5 year term deposits with them that have a few months to run. I told them I was a sex worker and they wanted to know the category! I am not a sex worker but how I see it it is non of their business especially ringing me on my day off, a non business day. I told them I would close my accounts before I told them my occupation, Today they sent me some forms to close my accounts or else supply them with 3 months of my working bank accounts to show where my income came from. You have to be joking! I have supplied them with drivers licence etc etc already. I have already emptied my call account with them and will close the other accounts as they mature.

Welcome tot the world of FACTA. Any bank you go to will for new accounts will ask you to fill in a bunch of forms.

This was not a new bank. Been with Rabobank since they started in NZ. Pretty amazed that they will let a customer go without trying to keep them. Have had over 900k in term deposits etc with them. I think what annoyed me most was some foreigner ringing me on a public holiday about it. They have all sorts of security systems when I want to deal with them but all I get when they want to know something is a foreigner ringing on my mobile on a public holiday saying that he is from Rabo. It was legit though as I have had an email follow up.