Changes to savings account rates and very short term deposits have put the focus back on savers.
Both ASB and BNZ made some 'adjustments' on Monday, all of them lower.
On the other hand, UDC is offering 3.65% for a nine month term deposit, up +15 bps from 3.50%.
ASB and BankDirect have comprehensively cut savings account rates.
For example, their new 'FastSaver' rate is now 1.25%, an account that now seems very inappropriately named.
The most interest you can earn on a 'Moneymaker' account is now just 0.25%; on the 'Headstart' account it is just 1.50%.
BankDirect have a "High interest transaction account" that pays just 1.25% - for balances over $100,000, another inappropriately named account. Otherwise, its just 0.25%.
ASB has reduced all its rates for term deposits with balances between $5,000 and $10,000 (actually, $9,999).
At this level, for one month, the reduction is -0.25%. For three months, the cut is -0.50%. For all terms longer, the reduction is to 2.25%, down -0.25% from 2.50%.
ASB (and BankDirect) have also trimmed its offers for balances of $10,000 and over for 60 days and shorter. The new rate is 1.50%, down -0.50% from 2.00%.
Clearly, ASB don't want either small or very short term deposits. The returns offered for these are now just nominal.
BNZ has also made changes, also all reductions. Most BNZ changes are much less however.
Their 'RapidSaver interest rate has been reduced by -0.10% to a new potential rate of 3.00%.
BNZ has also reduced two term deposit rates, both by -0.10%. For a six month term their new rate is 3.30% and for a nine month term it is 3.40%.
Longer term rates are unchanged at this time.
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 carded, or advertised, term deposit rates for all institutions for terms less than one year are here, and for terms one-to-five years are here.
The latest headline rate offers are in this table.
| for a $25,000 deposit | Rating | 6 mths | 1 yr | 18 mths | 2 yrs | 3 yrs | 5 yrs |
 |
AA- | 3.30 | 3.45 | 3.50 | 3.60 | 3.70 | 3.80 |
 |
AA- | 3.30 | 3.40 | 3.50 | 3.60 | 3.75 | 4.00 |
 |
AA- | 3.30 | 3.50 | 3.55 | 3.60 | 3.75 | 4.00 |
| Kiwibank | A+ | 3.30 | 3.50 | 3.60 | 3.80 | 3.90 | |
 |
AA- | 3.15 | 3.40 | 3.40 | 3.45 | 3.50 | 3.60 |
 |
BBB- | 3.40 | 3.50 | 3.55 | 3.65 | 3.75 | |
 |
BBB | 3.40 | 3.55 | 3.55 | 3.60 | 3.70 | 3.80 |
| HSBC Premier | AA- | 2.90 | 3.00 | 3.15 | 3.25 | 3.35 | 3.50 |
 |
A | 3.45 | 3.60 | 3.70 | 3.70 | 3.85 | 3.95 |
| SBS Bank | BBB | 3.45 | 3.50 | 3.60 | 3.65 | 3.70 | |
 |
A- | 3.30 | 3.50 | 3.55 | 3.60 | 3.65 | 3.85 |
| UDC | AA- | 3.50 | 3.65 | 3.55 | 3.60 | 3.65 | 3.85 |
Term deposit rates
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11 Comments
APRA move means ANZ NZ must repay parent NZ$8b over 5 years
Who other than depositors funding the big four Australian banks are subsidising this wealth transfer racket?
I was wondering how the tenants will afford to pay rent as they are discarded from the workforce - I guess accommodation supplement transfers will have to rise as interest rates fall, but taxes inevitably must rise more. Read more
Nonetheless, I will be be relying on my default fall back position - buying sovereign debt, foreign or otherwise. Read more And we all know how well that has worked out over the last decade or more. As they say supply creates demand.
Can you name anyone? I am told I am one of three private traders with a NZDMO account at Computershare.
ASB have also cut rates from 3.5% to 3.15% on their Savings Plus account. These accounts require that you make no withdraws during a calendar quarter or else you only receive base interest of 0.5%.
For a bank brand that prides itself on technology, they're pretty damn lame are communicating these changes to their customers.
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