Although term deposit rate changes have lagged wholesale and mortgage rate rises, there's been a steady stream of them, shifting where you can find the highest rates

Even though wholesale interest rates are rising notably, and there has been some increase in home loan rates, the movements in retail term deposit rates have been tamer.

But some have been moving and almost all these rates are up, even if only marginally.

However, these changes have altered who has the 'best' (=highest) rates on offer now.

Today's (Tuesday) notable change has come from BNZ, raising rates for six specific terms.

After this change, the highest rate from;

• any bank for 5/6/7 months is Bank of India's 3.70%. For a main bank it is 3.45% from all of them.
• any bank for 8 to 11 months is Heartland Bank's 3.75%. For a main bank it is 3.60% from both BNZ and Westpac.
• any bank for 1 year is Rabobank's 3.95%. For a main bank it is 3.90% at BNZ.

Higher rates are available from some non-bank deposit takers who have the Deposit Compensation Scheme protection.

The rates for Kiwi Bonds are now notably low; they were last updated on March 5, and there have been significant wholesale movements since then. A rate change could come soon.

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.)

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 six weeks. The yellow colour code is for those under 4% and these have been reducing from the long end. Bolded rates are the "best-bank", the highest carded rate from any bank at this time. The blue-coded rates are those under 3%. We might start to see some 5% rates appearing soon if the rates pressure is sustained.

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

for a $25,000 deposit May 19, 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	4.00	4.20	4.50
	AA-	3.00	3.45	3.55	3.75	4.00	4.15	4.50
	AA-	3.00	3.45	3.60	3.90	4.00	4.20	4.50
	A	3.10	3.45	3.40	3.85		4.25	4.50
	AA-	3.00	3.45	3.60	3.85	4.00	4.20	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-	3.20	3.60	3.60	3.60	3.60	3.65	3.85
Bank of China	A	3.30	3.65	3.70	3.75	3.80	4.10	4.35
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	3.50	3.50	3.80	4.00	4.20	4.50
Heartland Bank	BBB	3.00	3.60	3.75	3.70	4.00	4.30	4.50
ICBC	A	3.25	3.65	3.70	3.85	4.05	4.35	4.65
	A	3.10	3.65	3.65	3.95	4.00	4.40	4.55
	BBB	3.00	3.45	3.55	3.80	4.00	4.20	4.50
	BBB+	3.00	3.45	3.50	3.80	4.00	4.20	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 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		3.80		4.25
Nelson Building Society	BB+	2.75	3.40	3.50	3.70	3.85	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	3.85	3.90	4.25
Finance companies with DCS protection
Christian Savings	BB+	3.00	3.50	3.55	3.75	3.85	4.10	4.15
Finance Direct			3.95		4.30	4.50	4.25	4.50
General Finance	BB	3.50	3.80	4.00	4.55	4.80	4.80	4.90
Gold Band Finance	BB-		3.90	4.00	4.10	4.85	4.90	4.90
Liberty Financial	BBB	3.10	3.80	3.80	4.00	4.10	4.20	4.30
Mutual Credit Finance	B+			3.80	4.30	4.50	4.60	4.80
Welcome			4.00	4.15	4.35	4.35	4.50	4.65
Xceda Finance	B+		3.80	4.00	4.25	4.55	4.55	4.65