At the same time as it raised mortgage rates, BNZ has also raised term deposit rates.
Its 90 day term deposit rate was lowered to 3.00% from 3.25%, and nine month rate was also lowered to 3.80% from 3.85%.
Their 90 day TD rate was raised by a small amount to 3.30% from 3.25%, and their 9 month rate has been increased to 3.90% from 3.85%.
However rises have been announced for longer terms.
For an 18 month term, the new rate is 4.20%, up 10 basis points from 4.10%.
For two years, the new rate is 4.40%, up 20 basis points from 4.20%.
The three year rate has risen 30 basis points to 4.70% from 4.40%.
For four years, the rate's up 25 basis points to 5.00% from 4.75%.
And for five years the new rate is 5.30%, up 20 basis points from 5.10%.
The BNZ six month and one year rates are unchanged at 3.80% and 4.00% respectively.
PIE rates have moved by the same amounts, and that means the effective gross return for a 33% taxpayer for a five year term deposit is now 5.83%.
Interestingly, the mortgage rate rises announced at the same time were in a range around 30 basis points.
All term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.
| for a $20,000 deposit | 6 mths | 1 yrs | 18 mths | 2 yrs | 5 yrs |
 |
3.75% | 3.85% | 4.00% | 4.20% | 5.00% |
 |
3.75% | 4.00% | 4.10% | 4.20% | 4.00% |
| BNZ | 3.80% | 4.00% | 4.20% | 4.40% | 5.30% |
| Kiwibank | 3.75% | 4.20% | 4.20% | 5.00% | |
 |
3.75% | 3.85% | 4.10% | 4.20% | 4.70% |
| Co-op Bank | 3.60% | 3.75% | 4.10% | 4.20% | |
 |
4.00% | 4.25% | 4.35% | 4.50% | 5.10% |
| HSBC Premier | 3.80% | 3.90% | 4.00% | 4.10% | 4.60% |
 |
3.85% | 4.10% | 4.25% | 4.30% | 5.00% |
| SBS / HBS | 3.80% | 4.10% | 4.20% | 4.20% | |
 |
3.80% | 4.00% | 4.20% | 4.25% | 5.00% |
Term deposit rates
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1 Comments
Not bad business if you can get it. 5 year fixed loan at 6.9% and 5 year money cost (term) at 5.3%. A gross mark up of 30%+ and as a bonus attract or retain deposit money during the Meridian funding musical chairs. Just need to make sure borrowers can find the extra 4.5% "rent" or good business for bank might turn into bad business especially for depositors.
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