ANZ increases its eight-month term deposit rate by 10 basis points to 3.60%, matching the bank's five-year rate

ANZ has increased its eight-month, or 240 day, term deposit interest rate by 10 basis points to 3.60%.

That rate is the same as the bank's five-year rate, making it the equal highest carded term deposit rate currently on offer, for any period from one month to five years, from the country's biggest bank.

Eight months is an unusual term, with this ANZ offer the only carded eight month term deposit rate currently on offer from a bank. ASB does, however, currently have a 3.60% seven-month rate.

At the same time ANZ is increasing its 240 day PIE Fund rate by 10 basis points to 3.60%, which again matches the bank's five-year PIE Fund rate.

The changes are effective from today, Friday, September 23.

The latest term deposit rate move from ANZ comes after the bank last week cut its 18 month 'special' term deposit rate by 15 basis points to 3.45%. That 18-month 3.60% rate had been pitched by ANZ as a reason it only passed on five basis points of August's 25 basis points Official Cash Rate cut to borrowers. 

See all banks' carded, or advertised term deposit rates for one to nine months here.

And see all banks' advertised, or carded, term deposit rates for one to five years here.

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These are very high interest rates internationally. But with OBR it's not an investment without risk?

I agree with you Tim. Banking in NZ is one of the highest risk countries due to the fact that they have no deposit insurance, unlike the rest of the developed world. The interest rates marginally reflect that, but as rates keep being monkeyed with I fail to see why people would want to invest money from overseas giving the officially stated position of the rbnz goals to reduce the value of the $NZ AND reduce the OCR. Why would anyone want to put foreign currency at such a risk?
Not to mention the future potential downside of people not being able to afford their inflated housing loans in Auckland when interest rates move up. That's when the banking system will be strained and I would be very nervous if I had any large amounts of cash invested in NZ banks if that scenario ever eventuates. Fingers crossed this does not happen. But if it does, that will be the time to invest in real estate as prices will drop and the $NZ may go back to 50c on the $US, or more, as it did in 2002. I salivate.

ASB does still have highest advertised rate ... 18 months at 3.65% according to your table

ANZ has increased its eight-month, or 240 day, term deposit interest rate by 10 basis points to 3.60%.

That rate is the same as the bank's five-year rate, making it the equal highest carded term deposit rate currently on offer, for any period from one month to five years, from the country's biggest bank.

Unequivocal evidence that the money markets have absolutely no faith the RBNZ will achieve it's stated goal of reinvigorating the economy to spur inflation beyond 2%. So called official interest rate cut "stimulus" is obviously not associated with rising CPI inflation statistics in the minds of those charged with the responsibility of formulating money curves. Read more

Wow. Inner circle economist says it's all rubbish:

For more than three decades, macroeconomics has gone backwards

That is the first sentence of the abstract. The abstract ends with this:

Their models attribute fluctuations in aggregate variables to imaginary causal forces that are not influenced by the action that any person takes. A parallel with string theory from physics hints at a general failure mode of science that is triggered when respect for highly regarded leaders evolves into a deference to authority that displaces objective fact from its position as the ultimate determinant of
scientific truth.

Thank you Roger, illuminating - Romer got a good write up in the Guardian earlier this week.

The Big Four banks in New Zealand are facing a shortage of term deposits, relative to stronger growth in demand for new lending. The Official Cash Rate is irrelevant to them, because under the Reserve Bank's 'Core Funding Ratio' regulatory requirements (see RBNZ website), banks cannot borrow from the Reserve Bank to finance lending. They must fund lending from either term deposits, or long-term wholesale funding. The cost of new long-term wholesale funding for banks has been rising throughout 2016 (for example the US PP market). So the big four are desperately trying to get term deposit money in by offering higher rates on term deposits, and they are not able to cut mortgage rates regardless of any OCR cut. The man on the street cannot borrow at the OCR of 2.0%, and neither can the big four banks for the purpose of funding lending.

I am glad that they are facing a shortage of people willing to invest. People are taking their money out of banks and putting it into higher yield stuff, like houses and shares. If banks want savers money, they have to increase interest rates. If a bank was to bring in some form of insurance scheme to protect depositors money, that could be an advantage. It is madness that someone may have all their lifetime savings in a bank, but there is no protection for them if it fails, and the OBR could take a percentage of that persons savings. Whether a government would allow it to happen is another thing, But under current rules, people could lose their savings when a bank fails. And banks do fail in NZ as history has shown, it is not 'unlikely', as they advertise. It is not as though we don't have a property bubble either.