All week we have been reporting cuts to home loan rates - and, that those have been 'paid for' by cuts to term deposit rates.
Now all the majors have moved on home loan rates, it is time to assess what happened to those term deposit rates.
Among the majors, the big thing that stands out is the Kiwibank 4.10% six month offer. You will probably need to be quick if you still want a big bank opportunity. It's an offer that ends on Monday, August 25, 2025.
But while this grabs all the attention, we should also note that 4% rates for two years have now all disappeared, most recently from cuts by Westpac.
And the other notable shift is how far below 4% some of the big Aussie banks have shifted their popular six and twelve month rates down. Apart from the Kiwibank 'special', BNZ has the highest rates currently for terms 3 month to 24 months.
There are still some 4% rates available from challenger banks.
And if you have a tax rate of 33% or more, equivalent before-tax returns above 4% are available if you have your term deposit as a PIE.
Further, Non-Bank Deposit Takers (NBDTs) broaden the options for 4%+ rates.
The risk of choosing a NBDT is very much lower now that the Depositor Compensation Scheme (DCS) is in place. But there are still risks. First, any balances above $100,000 are not covered by the DCS. And if an institution fails, you may have to wait a short period while a reorganisation takes place and your funds become available. Earned but not credited interest will be a grey area too in the event of a NBDT failure.
Always ask a bank for a better rate. Bank staff may 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 is 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- | 3.35 | 3.80 | 3.70 | 3.70 | 3.85 | 3.90 | 4.05 |
 |
AA- | 3.55 | 3.90 | 3.90 | 3.85 | 3.85 | 3.90 | 4.00 |
 |
A | 3.40 | 4.10 | 3.75 | 3.70 | 3.80 | 4.00 | |
 |
AA- | 3.45 | 3.75 | 3.70 | 3.70 | 3.75 | 3.85 | 4.00 |
| 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+ | 3.35 | 3.80 | 3.75 | 3.75 | 3.75 | 3.80 | 4.05 |
| 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 | 3.90 | 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 |
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