Two of the smaller banks have increased their term deposit rates.
The Co-operative Bank has raised its six and nine month rates to 4.30%, a +10 bps and +20 bps rise respectively, and it has raised its interest-at-maturity one year rate to 4.50%, up +10 bps.
RaboDirect has increased its 9 month rate by +15 bps to 4.30%, increased its one year to 4.50%, also up +15 bps, while pushing up its 15 month rate to 4.55%, an increase of +25 bps. These are all interest-at-maturity rates; lower rates apply for more frequent interest payments.
RaboDirect will make a similar move to its Term Advantage Fund PIE offer for the one year term. That gives an 'equivalent' rate of 4.84% for a 33% taxpayer. (That change does not become effective until mid-day today.)
The effect of today's changes are to match Kiwibank at 4.50% for one year.
RaboDirect has also today raised it's bonus saver account - "Premium Saver" - to the 4.50% benchmark as well, a rise of +15 bps.
While wholesale rates have been rising recently especially for terms below two years, banks have been under little demand pressure to follow those changes.
Use our deposit calculator to figure exactly how much benefit each option is worth; you can assess the value of more or less frequent interest payment terms, and the PIE products, comparing two situations side by side.
This positions the latest offers as follows:
* a 200 day 'special' rate