Banks were quick to talk about their home loan rate cuts following the RBNZ's May OCR rate cut, even if most of the major ones did not pass it all the way through.
Now the term deposit rate changes are starting to be announced.
The home loan rate cuts were generally effective about June 4, 2025. But the term deposit cuts are effective now.
Westpac is the first major bank to announce their TD changes, effective Friday, May 30. It seems likely that others will follow, trying to get them out and done in the shadow of the long weekend.
Interestingly, the global backdrop is putting some upward pressure on wholesale rates, not huge at this point but certainly not down. So rate cuts to term deposits aren't being caused at this time by that.
We should also keep an eye on the Kiwi Bond rates which haven't moved recently. They set the risk-free benchmark.
At the same time, the taxpayer-guaranteed Deposit Compensation Scheme is only about 30 days away from being launched on July 1, 2025. That means risk-free will be extending to most covered institutions from the perspective of many savers, and this will be another influence depressing savings offer rates.
We will update this page as changes are announced over the next few days.
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 month. The pink background colour-code indicates 5%+ rates still available. The yellow colour code for those under 4%. Bolded rates are the "best-bank" (currently all from China Construction Bank), the highest carded rate from any bank at this time.
| for a $25,000 deposit May 30, 2025 |
Rating | 3/4 mths |
5 / 6 / 7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs |
| Main banks | ||||||||
| ANZ | AA- | 3.65 | 4.05 | 3.95 | 3.90 | 3.90 | 4.00 | 4.05 |
 |
AA- | 3.70 | 4.00 | 3.90 | 3.90 | 3.85 | 3.90 | 4.05 |
 |
AA- | 3.70 | 4.00 | 3.95 | 3.90 | 3.90 | 3.90 | 4.00 |
 |
A | 3.70 | 4.05 | 4.00 | 3.90 | 4.00 | 4.00 | |
 |
AA- | 3.55 | 3.90 | 3.90 | 3.80 | 3.90 | 4.00 | 4.10 |
| Kiwi Bonds. 'risk-free' | AA+ | 3.50 | 3.50 | 3.50 | ||||
| Rating | 3/4 mths |
5 / 6 / 7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs | |
| Other banks | ||||||||
| Bank of China | A | 3.90 | 4.15 | 4.10 | 4.00 | 4.05 | 4.05 | 4.15 |
| China Constr. Bank | A | 3.85 | 4.25 | 4.20 | 4.20 | 4.20 | 4.20 | 4.20 |
| Co-operative Bank | BBB+ | 3.55 | 4.05 | 4.00 | 3.90 | 3.95 | 4.00 | 4.10 |
| Heartland Bank | BBB | 3.80 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.15 |
| ICBC | A | 3.75 | 4.05 | 3.95 | 4.00 | 4.00 | 4.05 | 4.10 |
 |
A | 3.75 | 4.10 | 4.05 | 4.05 | 4.05 | 4.00 | 4.10 |
 |
BBB | 3.70 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 | 4.00 |
 |
BBB+ | 3.65 | 3.95 | 3.95 | 3.90 | 3.90 | 4.00 | 4.10 |
| 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 | 4.00 | 4.25 | 4.25 | 4.25 | 4.15 | 4.15 | |
| Heretaunga Bldg Society | 3.65 | 4.10 | 4.05 | 4.10 | ||||
| Nelson Building Society | BB+ | 3.25 | 3.75 | 4.00 | 3.60 | 4.00 | 3.70 | 3.70 |
| Police Credit Union | BB+ | 3.70 | 4.00 | 3.95 | 3.90 | 3.90 | 3.90 | |
| UnityMoney | BB | 3.35 | 3.75 | 3.65 | 3.65 | 3.65 | 3.70 | 3.70 |
| Wairarapa Bldg Society | BB+ | 3.80 | 4.15 | 4.10 | 4.10 | 4.10 | 4.10 | |
| Finance companies | ||||||||
| Christian Savings | BB+ | 3.65 | 4.15 | 4.10 | 4.05 | 4.05 | 4.05 | 4.15 |
| Finance Direct | 3.95 | 5.35 | 5.85 | 5.55 | 5.15 | |||
| General Finance | BB | 4.00 | 5.25 | 5.40 | 5.50 | 5.25 | 5.00 | 4.40 |
| Gold Band Finance | BB- | 3.75 | 3.75 | 5.50 | 5.50 | 5.55 | 5.55 | |
| Liberty Financial | BBB | 3.95 | 5.15 | 5.15 | 5.20 | 4.80 | 4.80 | 4.70 |
| Mutual Credit Finance | B+ | 5.25 | 5.25 | 5.45 | 5.45 | |||
| Xceda Finance | B+ | 5.15 | 5.10 | 5.35 | 5.10 | 5.00 | 4.75 |
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