Raboplus has lifted its term deposit rates for terms one year and over by as much as 35 basis points (bps). The rates are for deposits over NZ$1,000. (Update 1 includes PSIS change.) For deposits with interest at maturity, Rabo raised its one year rate by 5 bps to 2.85%; its two year rate by 20 bps to 3.85%; three year by 30 bps to 5.10%; four year by 30 bps to 5.60%; and five year by 35 bps to 6.10%. Term deposit rates have been rising in recent weeks as longer term wholesale rates rise on fears of heavy government borrowing and as banks scramble to retain retail deposits, which have been cheaper than borrowing overseas. Raboplus has tended to move its deposits in lock-step with wholesale rates. The new five year rate is the highest offered by a bank for deposits up to NZ$10,000 but is surpassed by 6.25% offered by TSB for deposits over NZ$10,000. See all the latest rates for terms less than one year here, and for terms one year and over here. In another Wednesday morning move, PSIS raised its special 6 month term deposit rate (minimum NZ$5,000) by 25 bps to 4.50%, lifting it above NZ bank offers except for a special 4.60% rate from SBS (min NZ$5,000).
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