ANZ cuts term deposit rates and is now lowest in the market, following wholesale rates down

ANZ cuts term deposit rates and is now lowest in the market, following wholesale rates down

ANZ New Zealand, the nation's largest bank, has trimmed the interest rates it pays out to savers on term deposits for all durations of nine months to three years.

A similar reduction applies to its one year term PIE offer.

The reductions announced are significant, lowering its offers below its main competitors.

For a term deposit of NZ$10,000 or greater, the reduction for a nine month term is 25 basis points, taking the rate down to 4.00% from 4.25%.

For one year, the reduction is 20 basis points, giving a new rate of 4.10% when the previous rate was 4.30%.

For 18 months, the new rate is 4.15%, a cut of 15 basis points from 4.30%.

For a two year and three year term, the bank has sliced 10 basis points from the old rates. The two year rate is now 4.20% (was 4.30%) and the three year rate is now 4.40% (was 4.50%).

There have been no changes to the four and five year rates which remain 4.75% and 5.00% respectively. And there have been no changes to any rates for terms up to six months.

All term deposit rates for terms less than one year from all insitutions can be found here » and for terms 1 to 5 years, they can be found here » The term PIE rates are here »

ANZ's term PIE rate for one year was cut by a similar amount - to 4.10% from 4.30% - but investors using the PIE product will get an equivalent return of 4.47% if they are on the top 33% tax rate.

These reductions slip ANZ below the offers of its main rivals, as follows for a one year TD:

  Minimum Rate
  deposit $ p.a.
ANZ 10,000 4.10%
ASB 10,000 4.20%
BNZ 5,000 4.30%
Kiwibank 10,000 4.30%
Westpac 10,000 4.30%

Smaller banks offer similar rates for the one year term, with the top rate offer being from RaboDirect. (For monthly interest however, the RaboDirect offer is lower at 4.31%.)

Co-operative Bank 10,000 4.20%
HSBC 100,000 4.15%
RaboDirect 1,000 4.40%
SBS / HBS 5,000 4.30%
TSB 10,000 4.30%

Investors should be clear about when interest is earned and paid. This can range from 'monthly' through to 'at maturity', and for larger deposits and longer terms this can make a material difference to your actual earnings. Details on the codes used on our tables can he found here ».

The best way to work out the dollar amount of these aspects is to use our comprehensive term deposit calculator, here »

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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Japanese, chinese etc save so they dont starve in old age...."interest" is a misnomer....
Im saving because I want a better old age income. It would be nice to get some interest but really why should I expect to ponce off others.

no more term deposits for me.
its into the rental properties for me
a fail safe investment.

Yep , just as the purchasing power of it's future sale price collapses - it's called an irredeemable fiat currency system.
I would suggest early retirement - not worth expending one ounce of effort in return for money in this racket called an economy  Just make sure your life is geared to unearned income survival. 

Great idea. Retire early. Use up any savings so that if/when NZ super is means tested, you won't have anything stashed away.

oh....yes of course it is.
really......really it is.....

Supposedly the banks have to keep to the CFR which is defined as "stickier"deposits being retail deposits plus longer term wholesale funding (12 months term+)
How about splitting these apart and adjusting the figures to cause retail rates to rise (hopefully significantly) and cutting the amount of the other wholesale option.
That would make the banks sit up and take notice and also help the retired folk to make ends meet.
A benefit would also less interest paid overseas as I suspect the wholesale stuff comes from outside NZ and they pay very little tax while the retail deposits are clobbered at source.

Of course they are the lowest in the market, is anyone really surprised?  They have to pay for all their prime-time TV ad's 'telling us how wonderful they are' somehow...  I couldn't even get them to call me back for a Term Deposit I wanted to invest recently, rang them 4+ times, the talking heads on the 0800 number couldn't help and they all promised to have someone call me back and no one did.  I just gave up in the end and went with Kiwibank. The ANZ service experience is far worse now than ever before and no one seems to give a toss there...   

good news  -  now where is 5.5% lending rates for 5 year term.

What justification do they have for doing this, as the OCR has been the same for ages. Funny that they have done this after the merge of NB and ANZ, so people now have less choice on who they deposit with/ less competition.
The thing is that lowering the interest rates is indirectly causing the exchange rates to rise, as it means that people are putting their money into houses, which pushes the prices up, which means that other people need to borrow more to buy houses. Thatmoney comes from overseas investors, which then pushes up the exchange rate. And I thought they were trying to bring the exchange rate down, not push it up. It may be better for  exchange rate, if the OCR is lifted.

A benefit for National Bank credit cardholders (without a Nat or ANZ bank account)  -  they can now setup an online ANZ login & check their credit card account & statement ... National would not allow that previously ...

you need to take a look at what each bank is doing with its lending and deposit rates at the same time. looks like anz has reduced its deposit rates in order to keep its lending rates down (still best home loan rate in market) whilst  kiwibank has put its lending rates up in order to keep its deposit rates up (and kiwibank always claimed they would be the cheapest lender).
the good news for consumers is that you have choice, so instead of moaning move your deposits to the bank paying the highest deposit rates and move your lending to the bank charging the lowest lending rates.

So this is the benefit of Covered Bonds - What a win win!

TD's are a big risk for "savings". I have mates in Canada that retired on reasonable RRSP's (registered retirement savings plans ) expecting to supplement that with a modest pension. Interest rates plummeted and their RRSP's simply disqualified them from old age supplements because these are means tested. Essentially they saved and scrimped to end up with with approx the same take home money as someone with no RRSP or a small plan.
Take home lesson is to think about value. Freehold property is value. Monetary metal is value. Currency is an IOU to be used to aquire things of value. Saving today is difficult but not impossible.
One more point I like to keep in mind is that one persons savings is anothers debt.....thay are required to balance out. Wipe out one and the other goes as well. Default in Europe will be painfull and many pension funds will be in trouble.
Just my take on it.

"One more point I like to keep in mind is that one persons savings is anothers debt", Yes this is point which is ignored by those parroting the "debt is bad, saving is good" mantra (two sides of the same coin in reality) around here, What is the difference between buying a value based asset like property and saving in a bank? Transparency

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