ASB trims a range of term deposit rates, in most cases matching their main rivals, focusing on terms of 18 months and longer

At the same time it lowered some key mortgage rates by an unusually large drop, ASB has also lowered some term deposit rates.

New Zealand's second larges home loan lender has cut -20 bps from its 18 month term deposit offer rates and -15 bps from its two year term deposit offer rates.

For three and four years, the cut is -15 bps, while for five year, the cut is -20 bps.

Interestingly, these reductions don't leave ASB in a worse competitive position against its main rivals. Today's changes merely match others.

RBNZ data for the banking industry overall shows that only 5% of all term deposits have a 'residual maturity' of 2 years and longer, so the impact of these cuts will hit few investors. And only a bit more than 10% are for a term of 1-2 years.

These reductions do not quite match the recent falls in wholesale swap rates, which have fallen about -25 bps for durations of two to five years.

Wholesale rates are trending lower, and bond markets are also pricing lower yields.

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 3.40 3.40 3.45 3.55 3.65
ASB AA- 3.00 3.25 3.40 3.45 3.45 3.50 3.65
AA- 2.90 3.25 3.25 3.40 3.45 3.50 3.65
Kiwibank A 2.95 3.40 3.35 3.45   3.65 3.80
Westpac AA- 2.95 3.25 3.30 3.45 3.45 3.50 3.65
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- 2.60 2.90 2.90 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 3.65 3.80
RaboDirect BBB   3.30 3.65 3.45 3.60 3.70 3.90
A- 2.90 3.15 3.20 3.25 3.45 3.60 3.70
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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