For savers who rely on term deposits for some extra income, they might be wondering why they haven't seen any meaningful increase in rates recently.
Yes, fixed home loan rates have risen, and most banks have also raised some term deposit rates for savers. But these have been minor and not over the timeframes savers prefer.
The net result is a flat-lining of term deposit rate offers. It has been almost two months since we last looked at these rates in this way and we see very few changes, none meaningful. But there is an outlier 5% rate now for a three-year term, one we haven't seen in a while.
If there is a move, it is that the differences between institutions have closed right up.
The details are in the table below, which actually covers more institutions.
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 - but we thought that two months ago and there has been no change in that period. They look extra low now.
Low loan demand is likely the key reason there is modest competition for new term deposit balances.
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 a few 5% rates appearing soon if the rates pressure is sustained, and they are in pink.
This table only lists institutions covered by the Depositor Compensation Scheme.
| for a $25,000 deposit August 14, 2026 |
Rating | 3/4 mths |
5/6/7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs |
| Main banks | ||||||||
| ANZ | AA- | 3.00 | 3.55 | 3.65 | 3.90 | 4.20 | 4.30 | 4.40 |
 |
AA- | 3.00 | 3.55 | 3.70 | 3.90 | 4.15 | 4.20 | 4.40 |
 |
AA- | 3.00 | 3.55 | 3.60 | 4.00 | 4.20 | 4.20 | 4.40 |
 |
A | 3.10 | 3.50 | 3.70 | 3.90 | 4.30 | 4.40 | |
 |
AA- | 3.00 | 3.45 | 3.70 | 3.90 | 4.20 | 4.30 | 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 | 3.90 | 4.00 | 4.20 | 4.50 |
| Bank of China | A | 3.30 | 3.65 | 3.70 | 3.85 | 4.00 | 4.20 | 4.50 |
| Bank of India | BBB- | 3.05 | 3.45 | 3.45 | 3.70 | 3.90 | 4.25 | 4.25 |
| China Constr. Bank | A | 2.80 | 3.25 | 3.35 | 3.55 | 3.70 | 3.70 | 4.15 |
| Co-operative Bank | BBB+ | 2.90 | 3.55 | 3.70 | 4.00 | 4.20 | 4.35 | 4.60 |
| Heartland Bank | BBB | 3.15 | 3.60 | 3.70 | 3.90 | 4.20 | 4.30 | 4.40 |
| ICBC | A | 3.25 | 3.70 | 3.80 | 3.95 | 4.10 | 4.40 | 4.65 |
 |
A | 3.10 | 3.65 | 3.75 | 4.05 | 4.25 | 4.40 | 4.55 |
 |
BBB | 3.00 | 3.45 | 3.60 | 3.90 | 4.00 | 4.30 | 4.50 |
 |
BBB+ | 3.00 | 3.45 | 3.60 | 3.90 | 4.00 | 4.20 | 4.50 |
| 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 | 3.20 | 3.65 | 3.70 | 4.00 | 4.10 | 4.30 | |
| Heretaunga Bldg Society | 3.05 | 3.60 | 4.00 | 4.35 | ||||
| Nelson Building Society | BB+ | 2.75 | 3.40 | 3.50 | 3.90 | 4.10 | 4.30 | 4.55 |
| 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 | 3.65 | 3.75 | 4.20 | 4.20 | 4.35 | |
| Finance companies with DCS protection | ||||||||
| Christian Savings | BB+ | 3.00 | 3.60 | 3.70 | 4.10 | 4.15 | 4.30 | 4.60 |
| Finance Direct | 3.95 | 4.10 | 4.75 | 4.80 | 4.85 | |||
| 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 | 4.50 | 5.80 | 6.00 | 4.90 | |
| Liberty Financial | BBB | 3.30 | 4.00 | 4.00 | 4.40 | 4.50 | 4.60 | 4.70 |
| Mutual Credit Finance | B+ | 4.00 | 4.50 | 4.70 | 4.85 | 5.05 | ||
| Welcome | 4.00 | 4.20 | 4.40 | 4.65 | 4.80 | 4.85 | ||
| Xceda Finance | B+ | 3.75 | 3.85 | 4.10 | 4.45 | 4.50 | 4.70 | |
Term deposit rates
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