BNZ, Kiwibank hike deposit rates as competition for local funds heats up

Earlier in the week, Kiwibank raised its three to five year deposit rates by 25 bps, with its five year rate moving up to 6.75%, equal to the top bank offers for the term. Kiwibank raised its one year special deposit rate from 5% to 5.2% and raised the minimum deposit requirement from NZ$5,000 to NZ$10,000. This follows a similar move by Westpac last week. Kiwibank also cut its five month deposit rate by 10 bps to 4.5%. BNZ introduced a new 18 month special rate of 5.4% with a minimum deposit of NZ$10,000. This is equal to a rate offered by National Bank. Nelson Building Society (NBS) increased a number of its deposit rates. Although it cut its three month rate by 65 bps to 4.1%, it raised its nine month rate by 15 bps to 5.15% to be equal to CBS Canterbury's new nine month rate. NBS and CBS Canterbury also raised their one to three year deposit rates by between 5 and 25 bps. Financial services co-op PSIS raised its 18 month to 5 year deposit rates by between 25 and 75 bps. Its new five year rate is 6.75%, equal to the top bank offers. PSIS also increased its one year special rate with interest paid at maturity and a minimum deposit of NZ$5,000 by 10 bps to 5.25%. Meanwhile, RaboPlus has cut its longer term deposit rates by between 10 and 20 basis points (bps). Rabo cut its one to five year deposit rates. It generally moves its rates in lock-step with wholesale interest rates. See and compare all deposit rates offered in New Zealand for terms less than one year here, and for terms one year and greater here.