BNZ, Raboplus lift some term deposit rates but drop others (Update 1)

BNZ, Raboplus lift some term deposit rates but drop others (Update 1)
BNZ and Raboplus have announced some increases and reductions to term deposit rates, following moves by Kiwibank on Monday and CBS Canterbury on Tuesday. Competition is intensifying in the market for term deposits following Reserve Bank instructions for New Zealand's banks to raise more funds locally instead of on short term foreign wholesale markets. (Update 1 includes NZF moves.) BNZ's changes were for deposits over NZ$10,000. Despite lifting its five month and 18 month rates, BNZ lowered its one year term deposit rates. For the NZ$10,000 to NZ$49,999 bracket, it lowered the rate by 50 bps to 4%. For the NZ$50,000 to NZ$99,000 bracket, BNZ lowered the rate by 45 bps to 4.05%; and for deposits over NZ$100,000 it lowered its rate by 40 bps to 4.1%. It lifted its five month term deposit rate by 10 basis points to 4.60%. There have been a number of moves around this length of term recently, with 4.6% taking over as the key rate instead of 4.5%. BNZ raised its 18 month rates by between 70 and 80 bps to have them all sitting at 4.70%. TSB is currently offering 4.75% for a similar 18 month deposit, as is HSBC, although HSBC's rate is only for deposits over NZ$100,000. Raboplus said that in response to changes in wholesale rates, it would lower its 3 month rate by 50 bps to 4%, and its six month rate by 15 bps to 4.1%. Rabo raised its four year rate by 5 bps to 5.95%. NZF also announced some changes on Wednesday morning to longer term deposit rates. For deposits over NZ$10,000, NZF raised its two year rate by 60 bps to 7.6% and its three to five year rates by 60 bps to 8%. For deposits under NZ$10,000 the respective rates are now 7.35% and 7.75%. All the current term deposit rates are listed on our two pages here: - for term deposits less than one year - for term deposits of one to five years

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