Banks continue tweaking their term deposit offers with Kiwibank (down & up), and BNZ (down) the latest to move. These changes leave ANZ top of that main bank heap with its six month offer

The new week, the week before the next Reserve Bank Official Cash Rate review, has kicked off with term deposit (TD) rate cuts.

In fact, they extend a prior week where these cuts flowed as well.

Monday, both Kiwibank and BNZ are in there cutting rates to savers.

However, it a bit of a surprise, Kiwibank actually raised its one year rate to 4.75% from 4.60%, going against the grain. But that make's Kiwibank's TD offer for all terms 6 months to 12 months the same, 4.75%. And their 4.75% one year offer is now available for a smaller $5000 minimum deposit.

Despite that, ANZ still have a 4.80% six month offer on the table, the highest of all the main banks.

Among the challenger banks, ICBC and SBS Bank are offering 5.35% for a six month term deposit as stand-out rates. No main bank has a 5% rate any more, and now only three challenger banks have them.

And if you are up for the added risk, we should note that SBS Bank has a capital bond issue open at present that offers 6.25%.

But that capital bond won't qualify for the guarantee under the Depositor Compensation Scheme when it kicks in mid-year.

In the background, wholesale rate falls seem to have stalled, and are still at about the same level they were a month ago. So no wholesale pressure here for lower rates. Loan demand levels will be playing an outsized part in who banks are offering savers less.

When you invest, always check how interest is compounded. Depending on how much you are committing, compounding more often is materially better. But some banks advertise their "interest at maturity" rates different to their compounding rates, which for some can be set a little lower. Both Kiwibank and Rabobank do this, although most other main banks don't.

Use the calculator at the foot of this article to see the differences.

We should also point out that after-tax returns can be enhanced for some savers with higher tax rates, by the choice of PIE structures. Not all banks offer these, but most of the main banks do. For a nine month bank offer, they can be boosted by about 30 basis points going this way. In some cases that will make up any difference, or more.

Always ask a bank for a better rate. Many bank staff have discretion to offer more than the advertised rate. (And check your bank's app offers as they too are often enhanced to retain you). But in this environment don't get your hopes up for a positive response. Carded rates are likely to now be the 'best rate', except in quite special circumstances.

Use the term deposit calculator here, or the one below the table, to calculator your expected net returns.

The latest headline term deposit rate offers are in this table after the recent changes over the past week. The background colour-code indicates 5%+ rates still available.

for a $25,000 deposit February 10, 2025	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Main banks
ANZ	AA-	4.25	4.80	4.70	4.55	4.40	4.35	4.35
	AA-	4.25	4.75	4.60	4.50	4.30	4.20	4.30
	AA-	4.20	4.70	4.60	4.50	4.40	4.35	4.40
	A	4.25	4.75	4.75	4.75		4.40	4.40
	AA-	4.25	4.70	4.65	4.50	4.40	4.40	4.40
Kiwi Bonds. 'risk-free'	AA+		4.00		3.75		3.75
	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Other banks
Bank of China	A	4.40	5.00	4.85	4.80	4.65	4.45	4.45
China Constr. Bank	A	4.25	4.90	4.70	4.65	4.55	4.45	4.40
Co-operative Bank	BBB+	4.15	4.85	4.70	4.60	4.40	4.35	4.40
Heartland Bank	BBB	4.55	4.90	4.80	4.65	4.50	4.45	4.45
ICBC	A	4.65	5.35	5.05	4.95	4.75	4.55	4.40
	A	4.35	4.85	4.70	4.55	4.50	4.35	4.35
	BBB	4.25	5.35	4.75	4.60	4.40	4.40	4.40
	BBB+	4.25	4.80	4.70	4.55	4.55	4.40	4.40
Non-Bank Deposit Takers	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Community institutions
First Credit Union	BB	4.25	5.00	4.80	4.70	4.60	4.50
Heretaunga Bldg Society		4.30	4.95		4.70		4.50
Nelson Building Society	BB+	4.40	4.40	4.30	4.20		3.90	4.00
Police Credit Union	BB+	4.20	4.80	4.70	4.55	4.40	4.20
UnityMoney	BB	4.25	4.75	4.55	4.45	4.25	4.20	4.15
Wairarapa Bldg Society	BB+	4.05	4.50	4.90	4.75	4.50	4.30
Finance companies
Christian Savings	BB+	4.25	5.00	4.90	4.85	4.65	4.45	4.45
Finance Direct			3.95		6.50	5.90	6.00	6.10
General Finance	BB	4.55	6.05	6.15	6.25	6.00	5.75	5.50
Gold Band Finance	BB-		3.75	3.75	6.40	6.20	5.75	5.75
Liberty Financial	BBB	4.25	5.85	5.65	5.50	5.00	5.00	4.90
Mutual Credit Finance	B+				6.50	6.50	6.75	6.25
Xceda Finance	B+		6.50	6.40	6.40	6.00	5.80	5.50