ANZ's response to the Reserve Bank's OCR cut has been to offer homeowners just -5 bps of the -25 bps rate cut on their floating mortgage rate, but to signal that their term deposit rates will be going up instead.
This is quite a different approach to what we have seen from any bank at previous RBNZ rate cuts.
The ANZ term deposit increases are effective tomorrow, Friday August 12 and will be:
| Product | Current rate | change | New rate |
| % | % | % | |
| 150 days (5 mths) | 3.00 | +0.25 | 3.25 |
| 270 days (9 mths) | 3.50 | special extended |
3.50 |
| 18 months | 3.30 | +0.30 | 3.60 |
No other rates are being changed at this time.
ANZ's Australian bank used a similar strategy there the last time* the RBA reduced rates. The holdback on the borrowing rate is still in place but the term deposit increases were rolled back after about 2 months. There is no suggestion that this will happen in New Zealand, but the behaviour is interesting all the same.
ASB has now followed by announcing a jump in its 18 month term deposit offer rate to 3.65%, up from 3.20%.
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.
So readers can keep an eye on what banks do in response to both the RBNZ rate cut and ANZ's selective term deposit rate hike, here are today's benchmarks:
| for a $25,000 deposit | Rating | 1-Jun-15 | 1-Dec-15 | 1-Apr-16 | 1-Jun-16 | 11-Aug-16 |
 |
AA- | 4.20 | 3.50 | 3.25 | 3.25 | 3.25 |
 |
AA- | 4.20 | 3.50 | 3.25 | 3.20 | 3.20 |
 |
AA- | 4.30 | 3.55 | 3.25 | 3.25 | 3.25 |
| Kiwibank | A+ | 4.25 | 3.50 | 3.30 | 3.30 | 3.25 |
 |
AA- | 4.10 | 3.50 | 3.20 | 3.20 | 3.20 |
 |
BBB- | 4.30 | 3.45 | 3.30 | 3.30* | 3.15 |
 |
BBB | 4.50 | 3.70 | 3.40 | 3.40 | 3.40 |
| HSBC Premier | AA- | 3.95 | 3.00 | 2.90 | 2.90 | 2.90 |
 |
A | 4.35 | 3.60 | 3.40 | 3.40 | 3.40 |
| SBS Bank | BBB | 4.40 | 3.60 | 3.35 | 3.30 | 3.25 |
 |
A- | 4.30 | 3.55 | 3.30 | 3.20 | 3.10 |
| UDC | AA- | 4.25 | 3.65 | 3.45 | 3.45 | 3.45 |
* Originally in error, now corrected
Our unique term deposit calculator can help quantify what each offer will net you.
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