Following somewhat arrogant comments by their Group CEO that 'ANZ New Zealand doesn't have to offer the best deposit rates so it doesn't', the local unit has moved quickly to squash his observation to ANZ's analysts and investors.
Late Monday it raised its term deposit rate offers up to the top of the range already offered by some of its main rivals, notably ASB and Westpac.
Left un-responded, those comments could have been damaging in the market. As it is, only ANZ's pride has been hurt, in that the bank CEO Shayne Elliott has just reinforced the image of a 'typical big bank boss'. And that is especially after ANZ NZ reported a massive $2.3 bln profit for the year to September 2022.
But ANZ New Zealand's customers can now access properly competitive term deposit rates. To be fair these aren't the best rates in the market, only at the top of the range among the five big banks.
Rabobank and China Construction Bank have the highest six month rates. SBS Bank's 5% is still the highest for a one year term.
After hitting highs, wholesale rates have trended lower in the past ten days. But today that decline stopped. Wholesale rates tend to follow global influences rather than local ones. And tomorrow the RBA will decide its next moves, to be followed by the US Fed. Locally, the local jobs report this week will also have an influence.
An easy way to work out how much extra you can earn is to use our full function deposit calculator. We have included it at the foot of this article. That will not only give you an after-tax result, you can tweak it for the added benefits of Term PIEs as well. It is better you have that extra interest than the bank (and especially if you are in the 39% tax bracket - PIEs are taxes at 28% flat).
The latest headline rate offers are in this table after the recent increases.
| for a $25,000 deposit November 1, 2022 |
Rating | 3/4 mths |
5 / 6 / 7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs |
| Main banks | ||||||||
| ANZ | AA- | 2.50 | 3.75 | 4.10 | 4.50 | 4.50 | 4.50 | 4.50 |
 |
AA- | 2.50 | 3.75 | 4.10 | 4.50 | 4.50 | 4.50 | 4.50 |
 |
AA- | 2.50 | 3.75 | 4.00 | 4.50 | 4.35 | 4.40 | 4.45 |
 |
A | 2.50 | 3.75 | 4.00 | 4.50 | 4.50 | 4.35 | |
 |
AA- | 2.50 | 3.75 | 4.00 | 4.50 | 4.50 | 4.50 | 4.50 |
| Other banks | ||||||||
| China Constr. Bank | A | 3.35 | 4.20 | 4.40 | 4.55 | 4.55 | 4.65 | 4.75 |
| Co-operative Bank | BBB | 2.10 | 3.70 | 4.00 | 4.50 | 4.50 | 4.65 | 4.70 |
| Heartland Bank | BBB | 2.50 | 4.00 | 4.30 | 4.70 | 4.50 | 4.50 | 4.50 |
| HSBC | AA- | 2.30 | 3.65 | 4.00 | 4.30 | 4.30 | 4.35 | |
| ICBC | A | 2.95 | 3.90 | 4.35 | 4.55 | 4.50 | 4.60 | 4.60 |
 |
A | 2.85 | 3.95 | 4.30 | 4.70 | 4.65 | 4.75 | 4.75 |
 |
BBB | 2.20 | 3.60 | 3.80 | 5.00 | 4.40 | 4.50 | 4.40 |
 |
A- | 2.20 | 3.60 | 4.00 | 4.50 | 4.55 | 4.60 | 4.70 |
Term deposit calculator
40 Comments
That's what happens when the back office apparatchik is promoted to the front office. The Peter Principle.
Appropriate caption photo. Assumedly the identity, only unzips in order to change feet?
This was Mr Burns' (Shayne Elliott) comments. Appalling lack of understanding about bank reputation, public perception, and branding.
As a shareholder I very much welcome someone who thinks in terms of profit maximisation.
"Profit maximisation"
Q. How far would you take that
A. To the extreme
A good example of this is the Auckland Rugby team of old under the Z Brook and Fitzpatrick regimes. Time was when they were the world leading exponents of professional fouls. Winning at any cost. After living in other regions and returning to Auckland I hated the Auckland team with a passion. And have never reconsidered this position. Even after the response was to allow for penalty tries. As a consequence I do not watch any rugby now. None.
Rugby. Can’t wait until it’s no longer the ‘national sport.’ Archaic. Football, Triathlons, cycling……anything but Rugby.
I agree. Banks are private businesses, not charities.
"Banks are private businesses, not charities."
Only when it suits them.
Someone tell the Reserve Bank that.
Pity they can't survive without government help i.e. GFC with out the deposit guarantee they were gone. Guarantee should have come with an equity component.
They hold a privileged position and the RBNZ and govt happy to strengthen their position to enable super profits at expense of all local challengers.
That will teach ANZ and other companies a lesson for daring to tell the truth (we don't offer the best TD rates because we don't have to). Much better keep quiet or lie in the future, Kiwis don't like to hear the truth.
Correct - what a scandal, a bank behaving like any private business! How dare they tell the truth! They should have learned from Jacinda and Labour's spin doctors that it is all about optics, not about truth.
Might be time to have some philosophical discussion of the role of companies in society. And if companies are so predatory that they play out a Tragedy of the Commons with citizens' wealth they undermine their long-term profitability too, so we're into Agency Theory troubles with this CEO.
And also how much taxpayers should be subsidising banks' profits, really? They're able to reap these profits because of society's support.
Edit: also, who on earth thinks companies don't invest heavily in PR in the first place? We didn't get into a situation of having house prices and rental yields subsidised by taxpayers, property speculation crazily undertaxed, and banks being subsidised by the Reserve Bank (ultimately, taxpayers) without some hefty PR along the way in the first place.
https://en.wikipedia.org/wiki/Accountable_Capitalism_Act
Introduced in 2018 - still in Committee. Seems to me the Biden administration really doesn't want to have that philosophical discussion.
I dont buy that. I own a business, you dont need to be morally bankrupt to make money.
Greedy and horrible company. ANZ is the worst bank to deal with, this comment reinforces that for me
LOL. Love it!
Sounds a bit cynical Kate however you normally like to rant about landlords so I completely understand.
I don't rant about landlords - I rant about rents and my taxpayer subsidy.
OK, they fixed it fast, credit due. Well done ANZ NZ (not that pratt at ANZ Australia). BNZ and Kiwibank still the laggards. TSB and Rabo still the best rates for the A rated banks.
ANZ Group CEO Shayne Elliott says ANZ NZ doesn't have to offer the best deposit rates so it doesn't
Right now, the 50-year trend in globalization is reversing. One of the consequences of deglobalization will be higher prices for decades to come. Gewgaws will no longer be cheap. Corporate profit margins will diminish. Link
Gewgaws - had to look it up :-). Apparently it's been around since 1529.
Dumb ass comments from a CEO who is well past his use by date, next time your traders submit a rate to wholesale markets Shane, dock a few points because u r big
Arrogance and stupidity , vital ingredients for bankers.
Those comments have just cost them millions. But then again that is just pocket change to them.
I will help myself to some of that Hubris. 4.5% for one year at 28% tax is welcome, compared to 4.2% on Friday.
ANZ Board of directors should reviewing his contract
And his hairdresser
Following somewhat arrogant comments by their Group CEO that 'ANZ New Zealand doesn't have to offer the best deposit rates so it doesn't'
"Somewhat"...how generous you are. That is sheer arrogance. Say it for what it is.
While govt shag around reviewing lack of competition in grocery business the banking cartel continues unabated with record profits very year, it’s a market not working
If I was a banker I would say the market is working just fine.
And if you are good Mr/Mrs Prime Minister we always have space for one more board member when you retire.
The govt doesn't care. It continues with the funding for lending program unabated.
Funds for Bank Margins.
An unwise comment, but a beat up over nothing ...all of the big banks do exactly the same. Otherwise they would all be matching TSB
Gut feel is the SE's time is almost up, and perhaps AW, both been in the hot seats a while, large scale change coming in next 2 years for ANZ NZ management for sure.
Which banks actually offer a term PIE?
For a Rabobank term deposit to be better than the term PIE with ANZ, Rabobank need to offer 5.4% over 12 months vs the ANZ 4.5% rate. (in the top tax bracket).
Rabobank are currently offering 5%pa - 5 year TD. Chart needs to be updated :)
I had already decided ANZ had no customer focus and they no longer have any of my money or goodwill
Perhaps if the central bank/government implemented a profit clawback scheme to recover the excess profits generated as a result of the funding for lending scheme, the bank in question would offer more keenly priced TDs.
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