Westpac is quietly offering four term deposit specials for terms of 270 days, one, three and five years. These special rates are for walk in customers with new money only and deposits over NZ$5,000. This offer will run until 5pm Friday, September 11. All bank term deposit rates for less than one year are here. Westpac's special 270 day rate is 4.7% and is 10 basis points higher than nine month deposit rates offered by other banks. It compares to Westpac's 3.5% standard rate currently offered for the term. 
The competition between banks for local term deposits has intensified in the last six months following new Reserve Bank of New Zealand (RBNZ) requirements for the banks to get more of their funding from local depositors. This has meant that shorter term deposit rates are now sitting considerably higher than the Official Cash Rate, which is at a record low of 2.5%.
There has also been upward pressure on mortgage rates as the banks have been required by the RBNZ to lengthen the terms of their funding in a push to decrease the banks' reliance on short term 'hot money' from global wholesale money markets. Westpac's special one year rate is 4.6%. This is the highest one year rate for the NZ$5,000 tier, although TSB is also offering 4.6% for one year deposits over NZ$10,000. HSBC is offering 4.6% for deposits over NZ$100,000. The special three year rate is 5.6%. This matches Raboplus' three year rate, although the Rabo rate is for deposits over NZ$1,000. SBS Bank is offering a special 5.75% three year investment rate. Westpac's special rate compares to its standard 5% offer for the three year NZ$5,000 tier, and is 10 bps above its standard offers above NZ$10,000. Westpac's special five year rate is 6.5%. Banks are already offering this rate for deposits over NZ$10,000, while ANZ National and Kiwibank are also offering 6.5% for the NZ$5,000 tier. Raboplus is offering 6.55% for a five year deposit over NZ$1,000. To see and compare all the term deposit rates offered in New Zealand click here for terms less than one year, and here for terms one year and greater.
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