In addition to hiking longer term fixed mortgage rates, BNZ has today (Monday) changed a range of term deposit rates.
It has cut its 3 month term deposit rate by -25 bps to 2.75%, and cut its five month term deposit rate by -20 bps to 3.30%.
However, it has also announced a 'special' term deposit rate of 4% for a two year term.
This rate is available for deposits of just $5,000 minimum (and up to a maximim of $1,000,000).
But, there are catches.
Firstly, this 4% offer is not available as a PIE.
And secondly, this new offer is "interest at maturity", so you will need to wait the full 24 months to earn the interest earnings. Interim interest is not available for this special offer. (If you don't need the interest paid more regularly, this 4% IAM rate returns the same after-tax result as a 2 year term deposit with 3.90% interest compounded quarterly. Use our deposit calculator to run the senarios for your specific situation.)
Update: This offer is only available until Sunday, December 4. BNZ has not stated how long this offer will be available.
The last time any BNZ rate was at 4% or more was on March 11, 2016 when its 5 year TD rate (interest yearly) was 4%.
The last time a BNZ two year rate was at 4% or more was on August 14, 2015 when it was 4.05%.
The last time any retail bank offered a rate of 4% or more was March 18, 2016 when ASB had a five year rate at that level.
The breaching of the 4% level will give savers some hope that higher rates are on the way, and will enable them to negotiate with other banks for higher rates.
But the locking up of funds for longer terms in what seems to be a turning rate environment will have many savers thinking through the risk/reward scenarios.
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.
All carded, or advertised, term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.
The latest headline rate offers are in this table.
| for a $25,000 deposit | Rating | 3/4 mths | 5/6 mths | 8/9 mths | 1 yr | 18 mths | 2 yrs | 3 yrs |
 |
AA- | 3.00 | 3.35 | 3.50 | 3.55 | 3.45 | 3.35 | 3.40 |
 |
AA- | 3.00 | 3.20 | 3.25 | 3.20 | 3.50 | 3.25 | 3.35 |
 |
AA- | 2.75 | 3.30 |
3.60 |
3.25 | 3.30 | 4.00 |
3.40 |
| Kiwibank | A+ | 3.20 | 3.15 | 3.20 | 3.60 | 3.25 | 3.40 | |
 |
AA- | 3.40 | 3.35 | 3.10 | 3.40* | 3.20 | 3.25 | 3.30 |
 |
BBB | 2.95 | 3.50 | 3.30 | 3.50 | 3.55 | 3.60 | 3.65 |
 |
BBB | 3.10 | 3.30 | 3.70 | 3.40 | 3.40 | 3.40 | 3.70 |
| HSBC Premier | AA- | 2.55 | 2.90 | 2.90 | 2.90 | 2.90 | 2.95 | |
 |
A | 2.85 | 3.50 | 3.35 | 3.40 | 3.40 | 3.45 | 3.55 |
 |
BBB | 2.75 | 3.55 | 3.30 | 3.70 | 3.45 | 3.35 | 3.40 |
 |
A- | 3.00 | 3.15 | 3.15 | 3.20 | 3.25 | 3.30 | 3.40 |
| UDC | A- | 3.00 | 3.35 | 3.60 | 3.60 | 3.65 | 3.45 | 3.45 |
| Wholesale/swaps | 2.08 | 2.13 | 2.12 | 2.27 | 2.45 |
Our unique term deposit calculator can help quantify what each offer will net you.
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