Today (Friday) has revealed a rate change on ASB's website for term deposit savers.
They have trimmed -10 bps off all their offers for terms of 2 to 5 years.
Their new two year rate is now 3.80%, a level it has not been at since before mid March.
ASB's three year rate is also down -10 bps, now to 3.90%.
Their four year rate is now at 4.10% with the same -10 bps reduction.
And that also applies to their five year rate which has now slipped to 4.20%.
Similar reductions apply to their term PIE rates.
These reductions have taken their rate offers down to those that Westpac have had since mid May, and of Kiwibank.
The slippage by ASB also accentuates ANZ's longer term deposit rate advantages over its other four main rivals.
Today's move by ASB may jolt those who thought the next move in this longer-term space would have been up.
Underlying wholesale rates have not been rising recently. In fact, they have pretty much trended down since the beginning of 2017.
Don't forget to shop around and ask for better-than-carded rates. Negotiate. We often hear that +0.10% or +0.15% can be added at some banks if you press them. A lot, however, will depend on the size of your business and the term you are prepared to lock it up for.
For higher rates, you need to assess the offers of institutions with a lower credit rating. Rate offers rise significantly from non-bank institutions with sub-investment grade ("junk") credit ratings.
Using 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.|
Rates in this table are the highest offered by each institution for the terms listed. You however will need to check how often interest is credited or paid. That important factor is not filtered in the above table and rates with various interest payment/credit arrangements are mixed here. However, our full tables do disclose the offer basis.
Our unique term deposit calculator can help quantify what each offer will net you.