At the same time as announcing a range of home loan rate rises, ANZ has made come companion term deposit rate changes.
All the long term ones are rises.
But for terms less than one year, there are some reductions.
ANZ's five month rate has been reduced from 3.30% to 3.15%, a drop of -15 bps.
Their 6 month rate is unchanged at 3.30%.
And their seven month rate has been increased by +15 bps to the same level, 3.30%.
For terms of eight and nine months, ANZ has cut these rates from 3.60% to 3.50%, a -10 bps reduction.
There is no change for their one year, 18 month, or two years rates of 3.35%, 3.75% and 3.90% respectively.
But they have increased their three, four and five year rates by +10 bps to 4.00%, 4.20% and 4.360% respectively.
Equivalent PIE rates have also been made.
These changes are effective from May 9, 2017.
Wholesale swap rates have not been moving much for about the last four months. However wholesale rate spreads have been reducing. KPMG has been reporting that bank margins have been increasing, even as bank bosses say they have been reducing.
Wholesale rates may be options for banks, but they are not for savers. But you can access bond rates on the secondary market, which offer liquidity in a way fixed term deposit commitments don't. But for that flexibility, you do concede retail rate levels. Depending on how you assess risk, you may well judge the flexibility to get your capital returned as more important the yield return. That is up to your personal tolerance for risk.
The benchmark 'risk free' return for savers are AAA Kiwi Bonds and they return just 1.75% for terms of six months and one year, 2.00% for two years, and 2.25% for four years. Any rate above that is a premium for risk. Credit ratings are one way to assess risk.
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.
The latest headline rate offers are in this table.
|for a $25,000 deposit||Rating||3/4 mths||5/6/7 mths||8/9 mths||1 yr||18 mths||2 yrs||3 yrs|
|* = 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.