Kiwibank lifts rates paid to savers for notice saver and online call products

Kiwibank pushes interest rate paid on 90 Day Notice Saver up 65 basis points

Personal Finance / news

Kiwibank pushes interest rate paid on 90 Day Notice Saver up 65 basis points

10th Mar 23, 12:08pm by Gareth Vaughan

Kiwibank's increasing the interest rate paid on five savings products by as much as 65 basis points.

The rate on Kiwibank's 90 Day Notice Saver, a floating rate savings account, is now 4.75%, up from 4.10%. The rate on its 32 Day Notice Saver is up 50 basis points to 4.05%. See how these rates compare to what other financial institutions pay on similar products here.

Kiwibank's also increasing the interest rates paid on its Standard Online Call, PIE online Call and Business Online Call products by 50 basis points to 3.85%. The 0.05% bonus rate on the Business Online Call product remains unchanged, whilst the other two continue to offer no bonus rate.

The increases are effective today, Friday March 10.

Kiwibank says there won't be any changes to its variable, or floating, home loan rates at this time.

You can see all banks' cash PIE rates here, and online call rates here.

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23 Comments

by Vivid | 10th Mar 23, 1:11pm 1678407119

Moved 25k from a big4 to Kiwibank this afternoon

by 8014 | 10th Mar 23, 2:08pm 1678410500

I'm doing the opposite. Kiwibank has had too many system outages for my liking - in 2021, there was a period stretching over a week where customers couldn't access their funds.

Only last month, they went offline for an hour - all the while their system status message stated systems were working normally.

Ability to access and move your funds shouldn't ever be in doubt.

by Tom Joad | 10th Mar 23, 2:48pm 1678412892

I've been a Kiwibank customer for over 15 years with multiple peronal and business accounts which I use multiple times a day and have not experienced these type of problems?

by 8014 | 10th Mar 23, 3:10pm 1678414238

Lucky you, not every KB customer has had the same trouble free experience

by Juzz | 10th Mar 23, 7:05pm 1678428337

Had no problems with them either, just put $38k in a KB account 5 mins ago.

by pacifica | 12th Mar 23, 3:00am 1678543252

The other banks have been far worse with far more outages. Plus ANZ has poorer security, could not correctly calculate for kiwisaver government contributions due to date database failures and still requires paper forms & data entry. ASB still has poor security, high fees and poor returns on saving. Westpac has poor security, openly asked if they could sell private customer trading information, BNZ ... shudder how many bailouts now. Do you think the grass is greener if you keep blinders on the state of the industry tech.

by John2 | 10th Mar 23, 9:18pm 1678436283

Better rates elsewhere

by pacifica | 12th Mar 23, 3:03am 1678543435

Not when you consider most, over 90%, those rates disappear with the need to use emergency savings for unexpected costs (which happens more frequently for many reasons for many families across NZ in cost of living crisis). Kiwisaver savings lets you keep the high interest rate no matter the number of transactions per month. Worth it considering the value does not change that much.

by Mark L | 10th Mar 23, 1:15pm 1678407323

At 5.4% their 1yr term deposit isn't stellar. Even Westpac beats it. I'm surprised they didn't move it

by pigeonbox | 10th Mar 23, 1:19pm 1678407594

Do you have to pay tax on a saver account? Just put a lot into a westpac 9 month TD, not exactly exciting rates atm though

by Vivid | 10th Mar 23, 1:25pm 1678407932

Yes. The bank will deduct resident withholding tax from interest paid. So long as you've given them the correct marginal tax rate there will be no adjustment in your end of year tax return, though if they don't have the right rate on file for you, you will need to pay (or be refunded) the difference. Most main banks have PIE funds which you can use instead which have tax advantages if your wage/salary/other earnings put you in the 30% or higher tax brackets.

by pigeonbox | 10th Mar 23, 1:46pm 1678409171

Thanks, appreciate it

by Tim Depositor | 10th Mar 23, 1:45pm 1678409159

The more people move their ready money and Term D'S, responsive to rate offers like this, between banks the better.

Everyone should have 3 or 5 banks and be prepared to shift cash as response to the higher offer. We need to show banks we are watching.

by OldSkoolEconomics | 10th Mar 23, 2:15pm 1678410909

Agree. And did same. Those who dont vote by moving money cant complain about Aussie banks rates.

If kiwibank suffers unacceptable outages for long their CEO needs to go

by Tim Depositor | 10th Mar 23, 2:30pm 1678411806

Heartland put their OnCall up last week to 3.6. This week Kiwi Bank up theirs by 50bps.

They do compete. But we have to move our cash.

by Hemi Ti Wire | 10th Mar 23, 3:51pm 1678416689

Jeez guys pay attention!! You can get 3.95 "of the bat" at BNZ rapid save with free withdrawal per month.

.. without going to second tier

by IanME | 10th Mar 23, 7:56pm 1678431367

You blew your already shakey credibility when you said BNZ would do 6% for 6 months yesterday

by Tom Joad | 10th Mar 23, 2:52pm 1678413126

Completely agree, and its also worth spreading funds across multiple banks to spread risk. This will still be the case when we finally get a deposit guarantee scheeme as there is likely to be a $100k limit per customer per bank.

by John2 | 10th Mar 23, 9:14pm 1678436086

a whole 100K you say.

what about a $Million

Many in this boat keeping the powder dry until later this year when real carnage will come

by Justa comment | 10th Mar 23, 4:28pm 1678418889

Agreed. With internet banking it is so easy to move savings from one to the other. Like others Ive noticed on this site, I moved my on-call savings out of KB last week, they were way too slow adjusting after the OCR rise 2 or 3 weeks ago. With the 100k deposit guarantee limit to come in, many will have multiple banks now. Paying loyal customers less than the forced OCR rate is not on. I however had never had a problem with KBs internet banking, but from my experience ANZ has the best internet banking site and app, and also the best phone customer service.

by nzforall | 10th Mar 23, 5:32pm 1678422755

No way near the SBS 6%

by John2 | 10th Mar 23, 9:16pm 1678436167

Checkout Kernels 4.75% for 32 days NS

They use Heartland bank.

by anilkiwi | 11th Mar 23, 8:37am 1678477045

Well done 👍