ASB sets new top deposit rate under 1 year at 4.75% for 9 months

ASB and Bank Direct made two changes to shorter term deposit rates on Monday morning. Both cut their three month term deposit rate by 50 basis points to 4%, and raised the nine month rate by 10 bps to 4.75%. Both rates are for a minimum investment of NZ$10,000. The new nine month rate is well above offers from other banks, as well as many offers from finance companies, credit unions and building societies. It is the highest rate offered by a bank for terms less than one year. A week ago, ASB raised its nine month rate from 4.35% to 4.65%. The new three month rate brings ASB and Bank Direct back down near offers from other banks, although it is still higher than those offered by the other major New Zealand banks. Of minor competitors, HSBC is offering 4.05% for a three month deposit over NZ$100,000, and SBS Bank is offering a three month investment special at 4.6%. The new nine month rate takes ASB further above its competitors. The only other nine month rates offered by a bank in New Zealand that are above 4% are 4.3% from Kookmin, and 4.05% from HSBC, although both are for deposits above NZ$100,000 (Kookmin also offers 4.2% for deposits over NZ$50,000). TSB is offering 4% for a nine month deposit over NZ$10,000. See and compare the new rates here.