ASB trims two key term deposit rate offers, raises one in changes that merely reposition its rate card to line up with its main rivals

Just after launching a market-leading 4.39% fixed 18 month mortgage rate on Friday, ASB has tweaked some term deposit rates, trimming two and raising one.

Its carded nine month term deposit rate has been lowered by -10 bps to 3.40%.

Its one year carded rate has been raised by +20 bps to 3.45%.

And its eighteen month rate offer has been trimmed by -5 bps to 3.60%.

None of the resulting levels are market-leading although it does position ASB roighly rate-competitive among the five majors.

Their new 3.40% nine month rate of 3.40% is now -20 bps below Heartland Bank's 3.60% offer.

ASB's one year 3.45% rate is now -25 bps lower than SBS Bank's 'special' for that term.

And ASB's 3.60% carded eighteen month rate offer is -15 bps lower than ICBC's equivalent offer.

ASB has made similar changes to their PIE Fund rates. Remember PIE funds get you a small after-tax yield boost if you are on the highest marginal tax rate,

Underlying wholesale rates have not been rising recently. In fact, they have pretty much trended down since the beginning of 2017. They are rising at the long end in early trading today, but weaker at the key short end on which these retail rates are based.

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.

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 3.40 3.40 3.50 3.65 3.80
ASB AA- 3.00 3.35 3.40 3.45 3.60 3.80 3.90
AA- 3.00 3.25 3.30 3.50 3.60 3.70 3.90
Kiwibank A 3.00 3.30 3.35 3.50   3.75 3.85
Westpac AA- 3.00 3.30 3.35 3.40 3.50 3.70 3.80
Other banks                
BBB 2.95 3.20 3.50 3.60 3.65 3.80 4.00
Heartland Bank BBB 3.10 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 2.95 3.25 3.55 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 3.30 3.30 3.50 3.70 3.65 3.85 4.00
A- 3.00 3.30 3.45 3.30 3.65 3.85 4.05
Selected fincos                
B*       5.00 5.30 5.70 5.80
F&P Finance BB* 3.45 4.00 4.10 4.15 4.25 4.35 4.50
Liberty Finance 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

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