ASB has raised some term deposit (TD) rates.
Maybe this can be seen as a response to the Reserve Bank's call for higher rates for savers. But it is unlikely. The focus of these ASB rises are for one year, two year and five year rate offers. Terms longer than one year have never been attractive to savers who use term deposits, and so they have not been significantly useful for banks managing their maturity profile.
ASB's 10 basis points (bps) rise for a one year fixed term to 4.00% beats ANZ and Westpac at 3.90%, but even at the new level it is still lower than BNZ's unchanged 4.05% and Kiwibank's recently changed 4.05%.
ASB's 2 year 4.30%, which is up 10 bps, just matches their main rivals.
But ASB's 5.00% five year rate is up 25 bps and has become the highest five year rate from any bank at this time. However, even at this level it is unlikely to attract much saver support.
Still, 5% for five years is an interesting pitch. You can't get a five year bank bond with a yield to maturity at that level presently. On the face of it, the TD option deserves attention. However, a bond is very liquid; you can sell it anytime via a broker on the NZDX whereas a five year term deposit is quite illiquid. And if the bank agrees to early termination there will be clawback of interest, undermining the face return.
The attractiveness of any rate needs to be assessed considering inflation, especially your view of inflation over the term of your deposit, and your tax rate. Use the term deposit calculator here, or the one below the table, to calculate your expected net after-tax returns.
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. 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.
The latest headline term deposit rate offers are in this table after the recent changes over the past four weeks. The yellow colour code is for those under 4%, and these have been reducing from the long end. 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 September 17, 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 | 4.00 | 4.15 | 4.30 | 4.40 |
 | AA- | 3.00 | 3.55 | 3.65 | 4.05 | 4.20 | 4.20 | 4.40 |
 | A | 3.10 | 3.55 | 3.70 | 4.05 | 4.30 | 4.40 | |
 | AA- | 3.10 | 3.45 | 3.70 | 3.90 | 4.20 | 4.30 | 4.40 |
| Kiwi Bonds. 'risk-free' | AA+ | 3.00 | 3.25 | 3.50 | ||||
| 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 | 3.75 | 3.80 | 4.00 | 4.20 | 4.30 | 4.50 |
| Bank of India | BBB- | 3.05 | 3.45 | 3.45 | 3.70 | 3.90 | 4.25 | 4.25 |
| China Constr. Bank | A | 3.10 | 3.50 | 3.60 | 3.85 | 4.00 | 4.15 | 4.35 |
| Co-operative Bank | BBB+ | 2.90 | 3.60 | 3.70 | 4.00 | 4.20 | 4.35 | 4.60 |
| Heartland Bank | BBB | 3.00 | 3.55 | 3.65 | 3.90 | 4.20 | 4.30 | 4.40 |
| ICBC | A | 3.25 | 3.65 | 3.75 | 4.10 | 4.25 | 4.40 | 4.65 |
 | A | 3.10 | 3.65 | 3.75 | 4.05 | 4.25 | 4.40 | 4.55 |
 | BBB | 3.00 | 3.55 | 3.70 | 4.05 | 4.20 | 4.35 | 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 | 3.70 | 3.80 | 4.05 | 4.25 | 4.30 | |
| Heretaunga Bldg Society | 3.05 | 3.60 | 4.05 | 4.35 | ||||
| Nelson Building Society | BB+ | 2.75 | 3.40 | 4.00 | 4.00 | 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 | 4.45 | |
| Finance companies with DCS protection | ||||||||
| Christian Savings | BB+ | 3.20 | 3.65 | 3.75 | 4.05 | 4.50 | 4.50 | 4.60 |
| Finance Direct | 3.95 | 4.10 | 4.45 | 4.50 | 4.60 | |||
| 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 | 5.70 | 4.85 | 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 | |
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