There have been a number of term deposit rate changes today.
ASB, which ended its "seven month special" of 3.60% on Friday, is back with a new higher standard nine month rate of 3.60% today, a rise of +50 bps for that term.
BNZ has also raised a term deposit rate by +50 bps. It has raised its 5 month rate (150-159 days) to 3.50%.
At the same time , BNZ has added +5 bps to its 9 month rate (270-364 days) to 3.60%.
These changes keep both ASB and BNZ with offers that match ANZ's eight month rate of 3.60%.
Not to be outdone, SBS Bank has raised its 9 month rate to 3.80%, which is the highest rate of any bank for any term. At this level it matches both Heartland and RaboDirect for their five year term.
All banks, but especially the second-tier banks, need local deposit funding if their loan demand is growing.
But banks are limited by the RBNZ's "core funding" rules as to how and where they find those additional funds.
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.
The latest headline rate offers are in this table.
|for a $25,000 deposit||Rating||5/6 mths||8/9 mths||1 yr||18 mths||2 yrs||3 yrs|
Our unique term deposit calculator can help quantify what each offer will net you.