There has been a small flurry of term deposit rate changes this week, none especially important on their own, but taken together they reinforce the downward trend in TD offer rates.
Of the 22 rates that changed, 19 were down.
Most changes were minor and some represented the ending of Special promotional rates.
They continue the almost uninterrupted trend of declining rates over the last twelve months that has seen one year rates fall -0.35% in that time to under 4.20%
You can find a comprehensive list of term deposit rates for all institutions with terms less than one year here.
And you can find a similarly comprehensive list of them for terms of one to five years here.
The best way to assess these rates is to use our full-function deposit calculator.
This tool allows you to compare the after tax returns of two options side-by-side. In fact you can compare regular term deposits with term PIEs as well. The list of term PIEs is here.
Here is the list of term deposit changes we have updated this week so far:
| Tier | Term | Previous | Now | change | |
 |
10,000 | 6 mth | 4.00% | 3.75% | -0.25% |
| BNZ | 5,000 | 3 mth | 4.00% | 3.25% | -0.75% |
| 1 yr | 4.40% | 4.20% | -0.20% | ||
| HSBC | 10,000 | 6 mth | 3.80% | 3.70% | -0.10% |
| 9 mth | 3.90% | 3.80% | -0.10% | ||
| 1 yr | 3.95% | 3.85% | -0.10% | ||
| Kiwibank | 10,000 | 6 mth | 4.00% | 3.75% | -0.25% |
| 9 mth | 3.85% | 4.00% | +0.15% | ||
| F&P Finance | 1,000 | 3 mth | 3.85% | 4.10% | +0.25% |
| 6 mth | 4.35% | 4.20% | -0.15% | ||
| 9 mth | 4.85% | 4.15% | -0.70% | ||
| 1 yr | 5.10% | 4.10% | -1.00% | ||
| 2 yr | 5.10% | 4.05% | -1.05% | ||
| 3 yr | 5.10% | 4.25% | -0.85% | ||
| 4 yr | 5.10% | 4.50% | -0.60% | ||
| 5 yr | 5.10% | 4.70% | -0.40% | ||
| FE Investments | 5,000 | 1 yr | 7.35% | 7.30% | -0.05% |
| 18 mth | 7.70% | 8.00% | +0.30% | ||
| 2 yr | 8.20% | 8.00% | -0.20% | ||
| CU Aotearoa | 500 | 6 mth | 5.25% | 4.50% | -0.75% |
| 1 yr | 4.75% | 4.65% | -0.10% | ||
| 2 yr | 6.00% | 5.00% | -1.00% | ||
| CU Auckland | 10,000 | 3 mth | 3.75% | 3.50% | -0.25% |
| 6 mth | 4.50% | 4.15% | -0.35% | ||
| 9 mth | 4.60% | 4.25% | -0.35% | ||
| 1 yr | 4.70% | 4.40% | -0.30% | ||
| 18 mth | 4.80% | 4.45% | -0.35% | ||
| 2 yr | 5.00% | 4.50% | -0.50% | ||
| PGG Wrightson | 1,000 | 4 yr | 5.05% | 5.00% | -0.05% |
| 5 yr | 5.05% | 5.00% | -0.05% |
(Updated with CU Auckland and PGG Wrightson rate changes.)
Term deposit rates
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4 Comments
Should be announcing some mortgage interest rate reductions any day then?
This from TD website in the States on CD rates there. Enjoy.
"Enjoy competitive interest rates on CDs, as well as a wide variety of terms to suit all your investment needs.
0.20%91 days
0.25%11 months
0.35%13 months
0.30%20 months
0.40%3 years
0.60%4 years
0.85%5 years
1.25%7 years"
So the banks are awash with depositors cash?
So for 1 year out the banks cant really see much of a RB OCR hike...4.7% out to 5 years...is this a good buy or bad I wonder.
regards
The banks don't need depositor cash. The RBNZ compel them to hold reserves. I wonder if they would if they didn't have to.
In the US CD rates are .3% for 20 months. Obviously if the Fed is creating $85 billion/ month depositors are not necesary.
Are people really still confident that supply and demand is at work in the housing markets worldwide. I put it to you that it is not. You cannot price risk or ascribe value today.
Thes are artificial markets underpinned by massive credit creation.
In the meantime enjoy the party......
Cheers
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