TSB Bank now has the lowest advertised one-year home loan interest rate out of all New Zealand's banks, after this morning cutting its rate from 5.70% to 5.49%.
Meanwhile, Kiwibank has increased its one, three, four and five year term deposit rates for deposits over NZ$5,000 and NZ$10,000 by five to ten basis points.
For deposits over NZ$10,000, with interest paid at maturity, the state-owned bank increased its one year deposit rate by 10 bps to 4.6%; its three year by 10 bps to 5.10%; four year by 10 bps to 5.50%; and five year by 5 bps to 5.85%.
It made the same size increases for rates with interest paid monthly. The new rates are: One year, 4.55%; three year, 4.90%; four year, 5.15%; and five year, 5.35%.
For respective deposits in the NZ$5,000 to NZ$10,000 band, Kiwibank's new rates are 10 basis points below those over NZ$10,000.
(Updates with TSB mortgage rate move)