Rate cuts by ANZ reduce its one year rate to main-bank level low, but the reduction is masked by an eight month 'special' promoting Daffodil Day

Following Kiwibank, New Zealand's largest bank has also reduced some selected term deposit rates.

ANZ has cut -10 basis points from its nine month, one year, four year and five year term deposit rate offers.

As a result of this change, ANZ now offers the lowest one year term deposit rate from any main bank.

At the same time, it has raised its 8 month 'special' to 3.45%. Essentially that shifts its 3.45% 'special' from nine months to eight months.

It is bundling that offer as its "Daffodil Day' promotion where it will donate $10 to the Cancer Society for every one of these eight month (240 day) Term Deposit accounts taken out before 31 August 2018. But they are capping what they will donate at to $50,000.

That means the first 5000 customers who respond to the offer will generate ANZ's donation, any above that won't. (If customers only deposit a minimum $10,000, then ANZ will have taken in $50 mln. Of course it will be much more than that as most customers for term deposits initiate much more than that. At a maximum, it will cost ANZ 0.1% - and probably much less than that.)

Their $10 donation also applies to term PIE accounts, and all the rate changes for term deposits also apply to term PIEs as well.

PIE rates give a small boost to pre-tax return equivalents.

Using our deposit calculator to figure exactly how much benefit each option is worth you can assess the value of more or less frequent interest payment terms, and the PIE products, comparing two situations side by side.

All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here.

Term PIE rates are here.

The latest headline rate offers are in this table. 

for a $25,000 deposit Rating 3/4 mths 5/6/7 mths 8/9 mths 1 yr 18 mths 2 yrs 3 yrs
Main banks                
AA- 3.00 3.25 3.45 3.40 3.55 3.65 3.80
ASB AA- 3.00 3.25 3.45 3.50 3.60 3.70 3.80
AA- 2.90 3.25 3.25 3.50 3.60 3.65 3.75
Kiwibank A 3.00 3.25 3.35 3.45   3.65 3.80
Westpac AA- 2.95 3.25 3.35 3.45 3.55 3.65 3.80
Other banks                
BBB 2.95 3.25 3.35 3.40 3.50 3.60 3.70
Heartland Bank BBB 3.10 3.45 3.60 3.60 3.70 3.80 3.85
HSBC Premier AA- 2.50 2.80 2.80 2.90   2.90 3.00
ICBC A 2.95 3.25 3.55 3.35 3.75 3.85 3.95
RaboDirect A 2.80 3.30 3.30 3.35 3.65 3.80 3.90
RaboDirect BBB 3.00 3.30 3.40 3.45 3.65 3.85 4.00
A- 3.00 3.15 3.20 3.25 3.50 3.65 3.90
Selected fincos                
Liberty Finance BBB- 3.60 3.95 4.25 4.30 4.35 4.40 4.45
UDC BBB 2.85 3.35 3.50 3.60 3.60 3.75 3.75

Rates in this table are the highest offered by each institution for the terms listed. You however will need to check how often interest is credited or paid. That important factor is not filtered in the above table and rates with various interest payment/credit arrangements are mixed here. However, our full tables do disclose the offer basis.

Our unique term deposit calculator can help quantify what each offer will net you.

Term deposit rates

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15 Comments

8 month special to promote daffodils.

Cut -10 bps from its nine month, one year, four year and five year term deposit rates to promote tulips?

Has anyone managed to negotiate a better rate for a term deposit?

Yes. In January the carded rate was 5 YR @ 4.25%, int paid annual. I got 4.27% int paid monthly.

RP, you put money with a Bank for 5 years?
What were you thinking, Surely with tax off 3% return is absolutely crazy investing!
You got a staggering .02 more than the carded rate!

TM2, @ 4.27%, they also agreed not to deduct rates, insurance, maintenance from it no matter how dire conditions might become! Go figure?

RP! I would say 10% less rates etc. would be a tad better than4.27 less tax!

TM2, yes you would. The key difference is my story is nonfiction.

Oh .. so does that indicate that mortgage rate also gonna to stay low ?
Still the landlords are increasing the rents ... how greedy

We have to increase the rents as a result of all these new taxes introduced by Taxinda and the COLs. Now we hospital-pass on to you guys...you had it coming.

Another negative geared Landlord has wistfully spoken. Seriously DGZ, if you could increase rents, you would have already ;-) Why you still cling to those two rentals while praying for a graceful exit just beggars belief.....

What taxes so far?? :-o

Greg

You've changed your post while I was responding to the first one.. Keep it consistent man.

Sorry Nic J.. I was responding to other reply..

No new tax is imposed on those landlords yet(AFAIK) .. just the possibility of it is used as an opportunity for more profit..

Ah Greg

It's all about the margin spread..... They can't raise mortgage rates, need more suckers to take the debt on so those headlines have to be cheap cheap cheap (even Uncle John already said that delinquencies are on the rise so they need to stay low) or that would magnify that issue.... But, Everyone love daffodils don't they? but more importantly a good cause (the amount of donation is unlikely to be obvious on the advertising campaign in the MSM so every Nana will go for it anyway) even though the rate is lower than the other banks, who cares Doris, we're doing good and helping other people..... yes you are Doris, you'll help maintain ANZ's margin between funding and lending.. God Bless you Doris

Yeah... Margin spread is a possibility..