ANZ and National Bank have hiked their one through to four year term deposit rates by between 20 and 30 basis points (bps) as the fight between banks for local funds intensifies before the Christmas break. ANZ National's new 18 month, two, three and four year deposit rates are now above rates offered by other major banks. At the same time, both cut their six month deposit rates above the NZ$10,000 tier level by 20 bps to 4.4%. For a minimum deposit of NZ$5,000, ANZ National raised its one year deposit rate by 20 bps to 5%; its 18 month rate by 30 bps to 5.4%; two year by 25 bps to 5.5%; three year by 25 bps to 6%; and four year by 25 bps to 6.5%. 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. ANZ National is offering 6.75% for a five year deposit. Banks in New Zealand have been fighting hard for local funding in recent months following new guidelines from the Reserve Bank stating that they must raise more of their funding locally and for longer terms. This has seen a number of banks push the boundaries for certain deposit terms, then pull rates back after investors took them up. ASB this week cut its five year deposit rate back to 6.5% after it had been as high as 6.85% from the first week of November.
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