Even though wholesale rates have turned down rather sharply in the past few days, BNZ has raised its one year TD offer above any other main bank

BNZ has launched a 6.25% one year term deposit offer, the highest of any main bank so far.

It is a "limited time" offer until Sunday, November 26.

At the 6.25% level, that is a full +10 bps higher than Kiwibank and +15 bps higher than either ANZ or ASB, the next highest main banks.

But it is still -45 bps lower than the 6.70% offer from SBS Bank. The SBS Bank offer is also a "limited time" offer, one that expires tomorrow, Tuesday, November 7, 2023.

In the background, benchmark bond rates are falling as global bond markets rally. Markets seem to be of the opinion that the future is not for higher rates. Perhaps those background rates have peaked for now?

Certainly, wholesale swap rates have fallen sharply in the past few working days and are back to April/May levels.

BNZ has also raised its nine month rate to 6.10%, joining most other banks.

In fact, across all banks, you can get a term deposit offer of 6.10% or more for any term of six months to three years.

Savers and borrowers alike should remember you can negotiate with any bank over their carded rate offers. You won't get a better rate if you don't ask. Whether a better rate is offered to you is up to the bank, and their perceptions of you, your financial situation and how important they feel it is to gain or retain your business. Many bank officers have some minor discretion on rates.

An easy way to work out how much extra you can earn is to use our full function deposit calculator. We have included it at the foot of this article. That will not only give you an after-tax result, you can tweak it for the added benefits of Term PIEs as well. It is better you have that extra interest than the bank, especially if you are in the 39% tax bracket - PIEs are taxed at 28% flat.

The latest headline rate offers are in this table after the recent increases.

for a $25,000 deposit October 24, 2023	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Main banks
ANZ	AA-	4.30	6.00	6.00	6.10	6.00	6.00	5.50
	AA-	4.40	6.00	6.10	6.10	6.00	6.00	6.10
	AA-	4.30	6.00	6.10 +0.10	6.25 +0.15	6.00	6.00	5.50
	A	4.40	6.05	6.10	6.15		5.80	5.50
	AA-	4.30	6.00	6.10	6.00	6.10	5.90	5.50
Other banks
Bank of China	A	5.10	6.10	6.15	6.25	6.10	6.05	5.85
China Constr. Bank	A	5.15	5.90	6.15	6.30	6.10	6.10	6.10
Co-operative Bank	BBB	4.20	6.10	6.10	6.10	6.00	5.90	5.80
Heartland Bank	BBB	5.50	5.90	6.00	6.10	5.90	5.90	5.85
ICBC	A	5.00	6.00	6.05	6.15	6.05	6.00	5.55
Kookmin Bank	A	4.40	5.60	5.70	6.00		5.20	5.20
	A	5.05	6.05	6.15	6.30	6.10	6.10	5.90
	BBB	4.20	5.85	5.70	6.70	5.90	5.90	5.90
	A-	4.25	5.75	5.80	6.00	6.00	5.90	5.80