Against the trend, BNZ has raised two key term deposit interest rates, pushing it to a more competitive position than its main rivals

BNZ has bucked the trend, raising two key term deposit rates this morning.

This follows reductions announced by Westpac recently, and changes by Kiwibank.

BNZ now offers a three month term deposit of 4.00%, the highest for a major bank, and equal to that offered for the same term by Heartland Bank.

For one year, the new BNZ rate of 4.40% is an increase of 0.20% and also the highest for a major bank. In fact it is better than their own 18 month and two year rates and the same as their three year rate. Only Heartland Bank's 4.45% one year rate betters it.

Another unique feature of the BNZ hike is that neither it's monthly interest option, nor its Term PIE options have seen a similar rise.

The twelve month monthly interest term investment rate remains at 4.20% and their three month Term PIE rate remains at 3.30% and the 1 year Term PIE rate remains at 4.20%.

The trend in term deposit rates has been declining steadily since April 2012 when they reached 4.5% for a one year TD. 

These new rates position BNZ in the market as follows:

for a $10,000 TD		3 mths	6 mths	1 year	2 years	3 years
		% pa	% pa	% pa	% pa	% pa
	AA-	3.25	3.75	4.00	4.20	4.40
	AA-	3.25	4.00	4.10	4.20	4.40
BNZ	AA-	4.00	4.00	4.40	4.20	4.40
Kiwibank	A+	3.30	4.00	4.10	4.20	4.40
	AA-	3.25	3.75	4.10	4.20	4.40
Co-op Bank	BBB-	3.80	3.90	4.10	4.35	4.50
	BBB-	4.00	4.25	4.45	4.55	4.75
HSBC	AA-	3.35	3.90	3.95	4.10	4.30
	AA-	3.25	4.05	4.25	4.30	4.50
SBS / HBS	BBB	3.30	4.10	4.20	4.20	4.50
	BBB+	3.25	4.00	4.15	4.25	4.40

Some banks have special rates for different terms than is shown in this table.

A comprehensive listing of all rates and the associated interest payment terms can be found here ».

Use our full-function deposit calculator to work out your after-tax return.

For some people, a Term PIE may give a better return. Check out those rates here ».