ANZ, National raise longer term deposit rates (Update 1)
20th Aug 09, 2:00pm
ANZ and National Bank have raised their three, four and five year term deposit rates by between 50 and 75 basis points (bps), following moves this week by Kiwibank, BNZ and Raboplus. (Update 1 includes NZ$5,000 tier moves.) Term deposit rates in New Zealand have been rising recently after the Reserve Bank told the banks they needed to raise more local funding from 'Mum and Dad' depositors, and also that the banks needed to lengthen the terms of their funding. Incidentally, Kiwibank, which released its results today for the year ended June 30, said that it would now have to start looking to raise funds from offshore wholesale markets due to the increased competition from the Australian-owned banks in the local term deposit market. For deposits over NZ$10,000, ANZ and National Bank raised their three year term deposit rates by 50 bps to 5.5%; four year rates by 75 bps to 6%; and five year rates by 50 bps to 6.5%. For the NZ$5,000 tier, ANZ and National have also raised their rates by between 50 and 300 bps to match those for the NZ$10,000 tier for terms one year and greater. See and compare all the new rates here.