Correction: This story is updated to correct an error in the reported change for SBS's one year term deposit rate.
Today, SBS Bank has raised some selected term deposit rate offers, include a market-leading one.
For six months, interest at maturity, SBS raised their six and nine month rates by 20 bps to 4.20%.
While that rate is quite competitive against most of its rivals, it is still 5 bps lower than RaboDirect.
However, for one year it also raised their rate by 20 bps. That pushed it up to 4.60% which is now the best one year rate of any New Zealand bank.
SBS also raised its 18 month rate to 4.60%, up 20 bps from 4.40%. Its one year rate is unchanged at 4.40%.
Also today, UDC raised term deposit rates for a number of terms from 30 days to one year.
The new UDC rate for one month is up by 10 bps to 3.10%.
For a four month term the rise is much higher. For a deposit of $5,000 their rate rises to 3.90% from 3.55%. For a deposit of $100,000 or more they now offer 4.00%.
For a six month term, UDC's rate rises to 4.10% with an extra 10 bps for a $100,000 deposit.
For nine months, the new rate is 4.20%, up from 4.05%, plus the extra 10 bps for a $100,000 deposit.
And for one year, UDC will pay 4.35%, up from 4.20%, plus that extra 10 bps for a $100,000 deposit.
Apart from the 18 and 24 month terms, UDC rates are better than those from ANZ who owns them. Besides, UDC deposit clients have a preferential claim over ANZ clients. The UDC prospectus says (page 17):
To secure repayment of all First Ranking Security Stock and Second Ranking Security Stock issued under the Trust Deed, we have granted the charge over all our assets and undertaking in favour of the Trustee.The fixed assets subject to the charge granted by us to the Trustee comprise office equipment, IT equipment, leasehold improvements, and fixtures and fittings used by us to carry out our business activities. In addition, we have also charged to the Trustee our undertaking, which includes our net loans and advances, and our operating lease assets. Our fixed assets are not subject to any other obligations in favour of any person that modify or restrict our ability to deal with the assets.
ANZ depositors are simply unsecured, just like deposits and investments at any bank.
Finally today, Heretaunga Building Society raised its 3 month term deposit rate to 3.60% today, a rise of 20 bps.
Use our deposit calculator to figure exactly how much benefit each option is worth; you can assess the value of more or less frequent interest payment terms, and the PIE products, comparing two situations side by side.
All term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.
This positions the SBS and UDC offers as follows:
| for a $20,000 deposit | 6 mths | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
3.75% | 4.10% | 4.75% | 5.00% | 5.25% | 5.75% |
 |
3.75% | 4.10% | 4.30% | 4.60% | 5.00% | 5.50% |
| BNZ | 4.00% | 4.25% | 4.50% | 4.75% | 5.00% | 5.50% |
| Kiwibank | 4.10% | 4.35% | 4.75% | 5.00% | 5.75% | |
 |
3.75% | 4.00% | 4.30% | 4.75% | 5.00% | 5.50% |
| Co-op Bank | 4.20% | 4.40% | 4.80% | 5.05% | 5.30% | |
 |
4.00% | 4.25% | 4.50% | 4.75% | 5.00% | 5.50% |
| HSBC Premier | 3.65% | 3.90% | 4.00% | 4.50% | 4.65% | 5.15% |
 |
4.25% | 4.35% | 4.75% | 5.00% | 5.25% | 5.65% |
 |
4.20% | 4.40% | 4.60% | 4.85% | 5.10% | |
| TSB Bank | 4.00% | 4.25% | 4.50% | 4.75% | 5.00% | 5.75% |
| UDC | 4.10% | 4.35% | 4.75% | 5.00% | 5.45% | 6.25% |
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