While ANZ trims term deposit rates, Westpac launches a one year rate at 3.70%, defying a general downward trend

Update: This story has been changed to correct who has the highest one year rate in the current one year TD offer: it is SBS Bank at 3.75%, not Westpac as incorrectly noted in an earlier version.

-----

Westpac has launched a 3.70% one year term deposit rate, a jump of +55 bps.

This new rate is available with interest at maturity, or interest paid monthly, quarterly or compounding.

It also raised its 6 month offer to a more competitive level, although it is well behind the BNZ offer.

But it pegged back its 8 month rate to 3.50%, a -10 bps cut.

Meanwhile, ANZ has trimmed its term deposit rates for all terms from 9 months to five years, although it did raise its one year offer by +5 bps to 3.30%. However that is now 40 bps lower than today's new Westpac offer.

BNZ has the sharpest offer for terms of about 6 months.

Chinese bank ICBC has the sharpest carded offer for terms about 9 months.

Westpac is out in front for a one year offer rate.

SBS Bank has the highest one year rate at 3.75%, followed by Westpac's 3.70% offer today.

It's ICBC again for eighteen months.

TSB offers the top rate of 4.00% for two years.

And TSB's 4.05% three year offer tops the banks for three years.

Don't forget to shop around and ask for better-than-carded rates. Negotiate. We often hear that +0.10% or +0.15% can be added at some banks if you press them. A lot, however, will depend on the size of your business and the term you are prepared to lock it up for.

Underlying wholesale rates have not been rising recently. In fact, they have pretty much trended down since the beginning of 2017.

For higher rates, you need to assess the offers of institutions with a lower credit rating. Rate offers rise significantly from non-bank institutions with sub-investment grade ("junk") credit ratings.

Using 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 financial institutions for terms of less than one year are here, and for terms of one-to-five years are here.

Term PIE rates are here.

Update: This story has been changed to correct who has the highest one year rate in the current one year TD offer: it is SBS Bank at 3.75%, not Westpac as incorrectly noted in an earlier version.

The latest headline rate offers are in this table.

for a $25,000 deposit Rating 3/4 mths 5/6/7 mths 8/9 mths 1 yr 18 mths 2 yrs 3 yrs
Main banks                
AA- 3.00 3.30 3.50 3.30 3.60 3.75 3.80
ASB AA- 3.00 3.35 3.50 3.25 3.65 3.80 3.90
AA- 3.00 3.60 3.50 3.15 3.60 3.85 4.00
Kiwibank A 3.00 3.30 3.35 3.50   3.85 4.00
Westpac AA- 3.00 3.30 3.50 3.70 3.50 3.70 3.80
Other banks                
BBB 2.95 3.20 3.50 3.60 3.65 3.85 4.00
Heartland Bank BBB 3.25 3.45 3.60 3.60 3.70 3.80 3.85
HSBC Premier AA- 2.50 2.80 2.80 2.90   2.90 3.00
ICBC A 3.00 3.30 3.60 3.35 3.75 3.85 3.95
RaboDirect A 3.00 3.35 3.35 3.40 3.70 3.85 3.95
RaboDirect BBB 2.75 3.25 3.45 3.75 3.65 3.85 4.00
A- 3.00 3.30 3.45 3.30 3.65 4.00 4.05
Selected fincos                
B*       5.35 5.50 5.70 5.85
F&P Finance BB* 3.45 4.00 4.10 4.15 4.25 4.35 4.50
RaboDirect BBB- 3.60 3.95 4.25 4.30 4.35 4.40 4.45
UDC BBB 3.00 3.50 3.75 3.80 3.75 3.85 3.85
  * = these credit ratings in this review that are not investment grade.  

Rates in this table are the highest offered by each institution for the terms listed. You however will need to check how often interest is credited or paid. That important factor is not filtered in the above table and rates with various interest payment/credit arrangements are mixed here. However, our full tables do disclose the offer basis.

Our unique term deposit calculator can help quantify what each offer will net you.

Term deposit rates

Select chart tabs »
The '1 year %' chart will be drawn here.
Loading...
(bank averages)
The '30 days %' chart will be drawn here.
Loading...
(bank averages)
The '90 days %' chart will be drawn here.
Loading...
(bank averages)
The '6 months %' chart will be drawn here.
Loading...
(bank averages)
The '2 years %' chart will be drawn here.
Loading...
(bank averages)
The '3 years %' chart will be drawn here.
Loading...
(bank averages)
The '4 years %' chart will be drawn here.
Loading...
(bank averages)
The ' 5 years %' chart will be drawn here.
Loading...
(bank averages)

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment or click on the "Register" link below a comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current Comment policy is here.