Bank term deposit rates start to drop (update 3)

Savers are set to loose out following the 150 basis point cut in the Official Cash Rate by the Reserve Bank on Thursday. Banks and finance companies have began to lower term deposit rates as well as mortgage rates. (Update 3 to include ASB's rate changes). Full lists of current fixed term deposit rates can be found here and here. Here is an overview of some of the banks' term deposit rate cuts: ASB has cut its term deposit rates except for 30 and 60 day terms. Cuts of note are a 1.00% cut in its 90 day rates to 5.00% (for deposits over NZ$10,000), and a cut in its one year rate for deposits over NZ$10,000 by 0.75% to 5.25%. For ASB's (and others) full rate changes click on the links above. BNZ cut its six month rates by 0.25%. The rate for a deposit between NZ$10,000 and NZ$49,999 fell to 5.15%; for NZ$50,000 to NZ$99,999 to 5.20%; and for a minimum deposit of NZ$100,000 to 5.25%. It also cut its one year rates by 0.5%: For a minimum deposit of NZ$10,000 to 4.90%; a minimum deposit of NZ$50,000 to 4.95%; a minimum deposit of NZ$100,000 to 5.00%. BNZ also cut its 18 month, three year and five year rates.  Kiwibank cut its six month rate for a minimum deposit of NZ$10,000 by 0.50% to 5.50%. It also cut its on to five year rates for minimum deposits of NZ$10,000. Its one year rate was lowered by 0.60% to 5.20%. Raboplus cut its six month rate by 0.45% to 4.95%, and its 6 month rate by 0.40% to 5.20%. It also cut longer term rates TSB cut its three month rate for a minimum deposit of NZ$10,000 0.25% to 6.00%. longer term rates were also cut. Westpac cut a selection of its short-term fixed term deposit rates as follows:

30 days (NZ$10,000 plus): down 0.50% to 5.50% 60 days (NZ$10,000 plus): down 0.50% to 5.50% 90 days (NZ$10,000 plus): down 1.00% to 5.00% 180 days (NZ$10,000 plus): down 0.80% to 5.00% 270 days to less than 12 months (NZ$10,000 plus): down 0.50% to 5.00%

Westpac did not change any of its fixed term deposit rates for terms longer than 12 months. Changes are effective December 5. HSBC was the first bank to drop its term deposit rates following the Reserve Bank's record 150 basis point cut in the OCR. HSBC followed a number of finance companies in dropping its rates. Here is a selection of HSBC's term deposit rate changes:

3 months (NZ$10,000 plus): down 0.25% to 5.25% 6 months (NZ$10,000 plus): down 0.45% to 5.05% 1 year (NZ$10,000 plus): down 0.40% to 5.05% 2 year (NZ$10,000 plus): down 0.35% to 5.25%

There have also been a number of finance companies that lowered their term deposit rates: Marac; HBS building Society; Napier Building Society; Southern Cross: Wairarapa building Society; Credit Union Auckland; Credit Union South; ABN AMRO Craigs; Goldman Sachs JB Were; PSIS; Equitable; FMG; General Finance; Gold Band Finance; Fisher & Paykel Finance; Public Trust; Priority Finance; Savings and Loans; Asset Finance; and the Police and Family Credit Union. Full lists of current fixed term deposit rates can be found here and here.