Westpac has reduced its term deposit rates.
What makes this change notable is that they have lead with reduced levels below their main rivals.
In fact, for a term deposit of $20,000 Westpac now has the stingiest offer from almost any bank (although HSBC may have lower NZ rates).
Most rates have reduced by either -10 or -15 bps.
The new lower rate offers are effective immediately.
All the Westpac rates in the table below are 'at maturity' which means for a five year term you would need to wait the five years to collect your 4.60%.
If you wanted to see some income earlier you will need to take an even lower rate, 4.40% for the five year example.
This is different to ANZ, ASB, and BNZ who all offer their main term deposit offer rates with interest paid annually, sometimes sooner. Some even allow compounding.
Kiwibank follows the Westpac model of making long term depositors wait until maturity, or accept a lower rate for interim interest payments.
However, TSB Bank pays interest six monthly for all terms selected of 6 months and greater.
The Cooperative Bank pays interest quarterly.
One way to embellish after tax returns is to consider using the PIE fund offers most banks have.
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 headline rate offers as follows:
| for a $20,000 deposit | 6 mths | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
4.00% | 4.20% | 4.30% | 4.40% | 4.50% | 4.60% |
 |
4.00% | 4.20% | 4.30% | 4.40% | 4.50% | 4.65% |
 |
4.10% | 4.30% | 4.35% | 4.40% | 4.50% | 4.65% |
| Kiwibank | 4.00% | 4.25% | 4.40% | 4.55% | 4.75% | |
 |
3.85% | 4.10% | 4.20% | 4.30% | 4.40% | 4.60% |
| Co-op Bank | 4.10% | 4.30% | 4.40% | 4.55% | 4.60% | |
 |
4.30% | 4.50% | 4.55% | 4.65% | 4.70% | 4.80% |
| HSBC Premier | 3.95% | 3.95% | 4.00% | 4.10% | 4.25% | 4.45% |
 |
4.10% | 4.35% | 4.40% | 4.55% | 4.65% | 4.85% |
| SBS Bank | 4.50% | 4.40% | 4.50% | 4.60% | 4.70% | |
 |
4.00% | 4.30% | 4.40% | 4.50% | 4.60% | 4.80% |
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