At the same time that Westpac raised its floating mortgage rates, it has also increased some term deposit and term PIE rates.
All terms up to eighteen months are increased.
These rises are effective from today, 29 July 2014:
The changes are:
- 30 day rate: up to 3.25% (from 3.15%)
- 60 day rate: up to 3.25% (from 3.15%)
- 90 day rate: up to 3.60% (from 3.25%)
- 4 month rate: up to 3.75% (from 3.50%)
- 5 month rate: up to 3.75% (from 3.50%)
- 6 month rate: up to 4.10% (from 4.00%)
- 9 month rate: up to 4.15% (from 4.00%)
- 12 month rate: up to 4.30% (from 4.20%)
- 18 month rate: up to 4.60% (from 4.50%)
The +35 bps rise for the 90 day term stands out among these changes, but it is not market leading. Heartland Bank offers 3.80% for 3 months and the Co-operative Bank leads that term with a 4% offer.
These higher Westpac rates also apply to their term PIE offers.
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 latest offers as follows:
| for a $20,000 deposit | 6 mths | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
4.10% | 4.30% | 4.75% | 5.00% | 5.25% | 5.75% |
 |
4.15% | 4.50% | 4.50% | 4.75% | 5.00% | 5.50% |
 |
4.10% | 4.30% | 4.50% | 4.75% | 5.00% | 5.50% |
| Kiwibank | 4.40%* | 4.50% | 4.75% | 5.00% | 5.75% | |
 |
4.10% | 4.30% | 4.60% | 4.75% | 5.00% | 5.50% |
| Co-op Bank | 4.30% | 4.50% | 4.70% | 4.85% | 5.10% | |
 |
4.00% | 4.50% | 4.50% | 4.75% | 5.50% | 5.50% |
| HSBC Premier | 3.90% | 4.15% | 4.40% | 4.65% | 4.90% | 5.25% |
 |
4.25% | 4.50% | 4.75% | 5.00% | 5.25% | 5.65% |
 |
4.20% | 4.40% | 4.60% | 4.85% | 5.10% | |
| TSB Bank | 4.10% | 4.40% | 5.00% | 4.80% | 5.00% | 5.75% |
* a 200 day 'special' rate
Term deposit rates
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1 Comments
RBNZ goes one better, offering 3.50% for seven days with added collateral protection for the best guaranteed debt redemption policy in the land . No OBR capital haircut exposure nonsense for this entitled private institutional depositor.
Similar government genorosity offered by the US Federal Reserve copped some public criticism in the WSJ last week.
Copy the wsj's article’s headline: The Federal Reserve's Risky Reverse Repurchase Scheme into Google search and read article from link provided there.
The mere existence of this facility could exacerbate liquidity runs during times of market stress. Borrowers in the short-term debt markets will have to compete with it for investment dollars and all, to varying degrees, will be viewed as higher risk than lending to the Fed. Even a relatively minor market event could encourage a massive flow of funds to the Fed while contributing to a flow away from other short-term borrowers.
Nonfinancial companies could find themselves unable to find buyers for their commercial paper. Banks could confront a sudden outflow of deposits, particularly those which are uninsured. Even the U.S. Treasury—traditionally viewed as the safest harbor—could see its borrowing costs spike as investors decide that the Fed is even safer.
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