Today (Wednesday) is Official Cash Rate (OCR) review day, and while no rate change is anticipated by either analysts or financial markets, there will be intense interest in how the Reserve Bank policy makers assess the new inflation risks.
In advance of that, TSB has raised its one year term deposit rate by 15 basis points to 3.90%. This is a level above all the main banks - in fact any bank - for a one year term deposit.
It also triggers a good opportunity to review where all term deposit rates have landed.
There haven't been too many changes over the past three weeks, and the ones that have changed have been below the radar. So an update is timely.
What we have been seeing is a slow but relentless steepening in the rate curve for savers. Short rates have generally held but longer rates have risen.
Among the short rates, there are now virtually none sub-3% anymore.
Among the highest rates, now only ASB has a market leading rate out to three years. TSB's new one year rate is market-leading for that term. But you have to wonder for how long. And that is because there is now a 4% rate for only an 18 month term (from Heartland Bank).
And despite them having to pay risk-based Depositor Compensation Scheme (DCS) fees that are higher than for banks, there are faster rising rate offers from non-banks who are covered by the DCS, some even at or above 5% (for five years).
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.
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). We have been surprised to hear recently of even big banks agreeing to a small boost, when asked.
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 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. The blue-coded rates are those under 3%.
This table only lists institutions covered by the Depositor Compensation Scheme.
| for a $25,000 deposit April 8, 2026 |
Rating | 3/4 mths |
5/6/7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs |
| Main banks | ||||||||
| ANZ | AA- | 3.10 | 3.45 | 3.40 | 3.70 | 3.80 | 4.10 | 4.40 |
 |
AA- | 3.00 | 3.45 | 3.55 | 3.70 | 3.80 | 4.05 | 4.50 |
 |
AA- | 3.00 | 3.45 | 3.45 | 3.70 | 3.85 | 4.00 | 4.40 |
 |
A | 3.10 | 3.55 | 3.40 | 3.75 | 4.10 | 4.40 | |
 |
AA- | 3.00 | 3.45 | 3.50 | 3.75 | 3.80 | 4.10 | 4.40 |
| Kiwi Bonds. 'risk-free' | AA+ | 2.25 | 2.50 | 3.00 | ||||
| Rating | 3/4 mths |
5 / 6 / 7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs | |
| Other banks | ||||||||
| Bank of Baroda | BBB- | 3.35 | 3.65 | 3.60 | 3.60 | 3.60 | 3.65 | 3.85 |
| Bank of China | A | 3.30 | 3.65 | 3.70 | 3.80 | 3.90 | 4.10 | 4.40 |
| Bank of India | BBB- | 3.25 | 3.70 | 3.70 | 3.70 | 3.80 | 3.85 | 3.85 |
| China Constr. Bank | A | 2.70 | 3.20 | 3.20 | 3.20 | 3.25 | 3.25 | 3.45 |
| Co-operative Bank | BBB+ | 2.90 | 3.45 | 3.50 | 3.80 | 3.85 | 4.10 | 4.40 |
| Heartland Bank | BBB | 3.00 | 3.60 | 3.75 | 3.70 | 4.00 | 4.30 | 4.50 |
| ICBC | A | 3.25 | 3.65 | 3.50 | 3.80 | 3.85 | 4.15 | 4.40 |
 |
A | 3.05 | 3.50 | 3.45 | 3.80 | 3.85 | 4.15 | 4.50 |
 |
BBB | 3.00 | 3.45 | 3.55 | 3.75 | 3.80 | 4.10 | 4.50 |
 |
BBB+ | 3.00 | 3.45 | 3.50 | 3.90 | 3.80 | 4.10 | 4.30 |
| Non-Bank Deposit Takers | Rating | 3/4 mths |
5 / 6 / 7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs |
| Community institutions with DCS protection | ||||||||
| First Credit Union | BB | 3.10 | 3.55 | 3.60 | 3.80 | 3.90 | 4.00 | |
| Heretaunga Bldg Society | 3.05 | 3.55 | 3.75 | 4.15 | ||||
| Nelson Building Society | BB+ | 2.75 | 3.40 | 3.50 | 3.70 | 3.80 | 4.10 | 4.40 |
| Police Credit Union | BB+ | 3.00 | 3.45 | 3.55 | 3.70 | 3.80 | 4.00 | |
| UnityMoney | BB | 3.00 | 3.45 | 3.40 | 3.35 | 3.50 | 3.55 | 3.55 |
| Wairarapa Bldg Society | BB+ | 3.10 | 3.45 | 3.45 | 3.80 | 3.85 | 4.15 | |
| Finance companies with DCS protection | ||||||||
| Christian Savings | BB+ | 3.00 | 3.50 | 3.55 | 3.75 | 3.85 | 4.10 | 4.15 |
| Finance Direct | 4.10 | 4.40 | 4.60 | 4.50 | 4.60 | |||
| General Finance | BB | 3.40 | 3.65 | 3.85 | 4.15 | 4.35 | 4.45 | 4.65 |
| Gold Band Finance | BB- | 3.90 | 4.00 | 4.10 | 4.30 | 4.40 | 4.60 | |
| Liberty Financial | BBB | 3.10 | 3.80 | 3.80 | 4.00 | 4.10 | 4.20 | 4.30 |
| Mutual Credit Finance | B+ | 4.30 | 4.50 | 4.60 | 4.80 | |||
| Welcome | 4.00 | 4.15 | 4.15 | 4.35 | 4.50 | 4.65 | ||
| Xceda Finance | B+ | 3.70 | 3.90 | 4.10 | 4.30 | 4.40 | 4.45 | |
Term deposit rates
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Daily swap rates
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