The fall in term deposit rates has probably picked up steam after ANZ's -15 bps cuts. But at least Kiwibank now offers an above 4% rate. How long will that last?

The slow, orderly falls in term deposit rates has picked up steam, and sharply.

ANZ has now taken -15 bps off its term deposit rates for 30 days to 9 months, and 2 years. It has taken -10 bps off its12 and 18 month rates.

But a new main bank option emerged right at the end of last week. Kiwibank launched a 4.10% six month offer. And that is a full +35 bps better than the new ANZ offer. Most other main banks offer 3.90, so a 15 bps advantage over ANZ's latest rate.

Also worth noting is that not even any Non Bank Deposit Taker is offering any 5% rates for any term. 5% rates are now a distant memory.

And with market pricing in more OCR rate cuts from the RBNZ, we are probably just starting on a downward trajectory. The Kiwibank 4.10% offer looks unusually good in today's environment.

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 institutions 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 calculate your expected net after-tax returns.

The latest headline term deposit rate offers are in this table after the recent changes over the past three weeks. The pink background colour-code of 5%+ rates has now vanished. The yellow colour code for those under 4% and has spread comprehensively. Bolded rates are the "best-bank", the highest carded rate from any bank at this time.

This table only lists institutions covered by the Depositor Compensation Scheme.

for a $25,000 deposit August 12, 2025	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Main banks
ANZ	AA-	3.35	3.75	3.70	3.70	3.70	3.75	4.00
	AA-	3.40	3.90	3.85	3.85	3.85	3.90	4.05
	AA-	3.55	3.90	3.90	3.85	3.85	3.90	4.00
	A	3.55	4.10	3.90	3.80		3.90	4.00
	AA-	3.45	3.90	3.85	3.80	3.90	4.00	4.10
Kiwi Bonds. 'risk-free'	AA+		3.00		3.00		3.25
	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Other banks
Bank of China	A	3.75	4.05	4.00	3.95	3.95	4.05	4.10
China Constr. Bank	A	3.25	3.70	3.70	3.70	3.75	3.85	3.90
Co-operative Bank	BBB+	3.50	3.90	3.90	3.85	3.90	4.00	4.10
Heartland Bank	BBB	3.60	3.90	3.90	3.85	3.90	4.00	4.15
ICBC	A	3.75	4.05	4.00	3.95	3.95	4.10	4.10
	A	3.55	4.00	3.90	3.90	3.95	3.90	4.00
	BBB	3.50	3.90	3.90	4.00	4.00	3.95	4.00
	BBB+	3.60	3.90	3.90	3.85	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		3.50	4.00		3.95		4.05
Nelson Building Society	BB+	3.25	3.75	3.75	3.60	3.80	3.70	4.00
Police Credit Union	BB+	3.50	3.90	3.85	3.80	3.80	3.90
UnityMoney	BB	3.30	3.75	3.75	3.60	3.50	3.55	3.55
Wairarapa Bldg Society	BB+	3.60	3.90	3.90	3.90	3.95	3.95
Finance companies
Christian Savings	BB+	3.50	4.00	3.95	3.95	4.00	4.05	4.15
Finance Direct			3.75		4.10	4.25	4.65	4.15
General Finance	BB	4.10	4.50	4.50	4.70	4.50	4.50	4.50
Gold Band Finance	BB-		2.75	2.75	4.20	4.20	4.30	4.55
Liberty Financial	BBB	3.70	4.50	4.55	4.65	4.65	4.55	4.35
Mutual Credit Finance	B+				4.25	4.25	4.35	4.65
Xceda Finance	B+		4.50	4.70	4.60	4.50	4.50	4.40