Savings battle heats up as RaboPlus lifts rates well over 5%
RaboPlus has increased its 6 month, 9 month and 1 year term deposit rates, upping the ante in an increasingly hard fought battle for term deposits. Banks are fighting to raise more funding from local and long term sources as they try to wean themselves off the 'hot' money markets that they relied on before the Global Financial Crisis.
The Reserve Bank's imposition of a Core Funding Ratio requirement for banks to raise 65% of their funds from local and long term sources has intensified their drive to raise money through local term deposits.
The AAA rated (negative outlook)-Raboplus lifted its 6 month rate to 5.10% from 4.95%, taking it above other bank rates grouped around 4.8%. Raboplus hiked its 9 month rate to 5.15% from 4.85%, taking its above the other banks' 9 month rates grouped around 4.1%. See all bank term deposit rates from 1 month to 9 months here.
RaboPlus increased its 1 year term deposit rate to 5.6% from 5.3%, taking it well above the other banks rates around 5.10%. See all bank term deposit rates from 1 year to 5 here.
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