SBS ups fight for short term deposits with new market leading rates

SBS ups fight for short term deposits with new market leading rates
SBS Bank has upped the ante in the scrap for local funds by introducing new market leading rates for shorter term deposits with a minimum deposit of NZ$5,000. The bank war for deposits in New Zealand has been intensifying in recent months as the bigger banks fight for more local funding. This follows a Reserve Bank drive to wean the big Australian-owned banks off their dependency on short term 'hot money' sourced from global wholesale money markets. For a minimum deposit of NZ$5,000, SBS raised its 5-6 month 'Term Investment Specials' (interest paid quarterly) by 35 basis points (bps) to 4.75%. The new five month rate at this level is now the highest offered by a New Zealand bank, while the new six month rate is equal to a TSB offer which requires a minimum deposit of NZ$10,000. SBS also raised its 9-12 month special (interest at maturity) by 15 bps to 5.15%. This is now the highest nine month rate offered by a bank in New Zealand. At the same time, SBS cut its three month special by 75 bps to 4%. This is still the highest three month rate offered by a New Zealand bank for the NZ$5,000 tier. See and compare all deposit rates offered in New Zealand for terms less than one year here, and for terms one year and greater here.

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