Kiwibank has hiked its two, three and four year term deposit rates by 25 basis points, while ASB and Westpac have also made a number of rate changes. See and compare all deposit rates for terms less than one year here, and terms one year and greater here. Kiwibank's new two year term deposit rate is 5.5%; three year 6%; and four year 6.5%. The new rates are equal to top rates offered by other banks for their respective terms. At the same time, Kiwibank cut its five month deposit rate by 75 bps to 3.75%, but raised its six month rate by 60 bps to 4.6%. (Corrected second to last paragraph of background to say 2009 not 2010 and to include requirements for longer term foreign funding). Kiwibank's new six month rate is still below ASB's new market-leading rate of 4.8%, after ASB raised the rate 20 bps for deposits over NZ$10,000. ASB also cut its nine month deposit rate by 85 bps to 4.25% and cut its four year rate by 25 bps to 6.25%.
Westpac has introduced a new 100 day special at 4.35%. For deposits over NZ$10,000, Westpac cut its six month rate by 60 bps to 4%, and cuts its one year rate by 20 bps to 5%. Banks in New Zealand began competing harder for local deposits over the second half of 2010 2009 following new prudential liquidity guidelines from the Reserve Bank requiring them to raise more funding from secure local and longer term foreign sources. This has seen banks regularly lift deposit rates in their search for new funding. A common practice now is for a bank to offer a market leading rate for a short period of time, then later cutting that rate and changing their focus to another term. See and compare all deposit rates forterms less than one year here, and terms one year and greater here.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.