In conjunction with their mortgage rate hikes today (Friday), both BNZ and ASB have shifted selected term deposit rates up too.
BNZ has added +20 bps to its 18 month term deposit, and +10 bps to its 3, 4 and 5 year term deposit rate offers.
That takes the new offer rates to 3.50%, 3.50%, 3.60% and 3.70% respectively.
These rates apply to all deposits from $5,000 to $1 mln, and interest can be paid quarterly or annually on these new rates.
BNZ still has its market leading 4% two year special on an interest-at-maturity. This special offer ends at the end of next week.
ASB has increased its 9 month rate by +35 bps to 3.60%. (This replaces their previous 10 month 3.60% special.)
It has increased its two year rate by +40 bps to 3.65%, its three year rate by +45 bps to 3.80% (the best 3 year rate in the market), its four year rate by +55 bps to 4.00% and its five year rate also by +55 bps to 4.10%.
There are now three rates of 4% or more in the New Zealand bank market, one by BNZ (2 years IAM) and two by ASB (4 and 5 years, interest annually).
As we have earlier noted, savers may wish to think through the wisdom of locking up of funds for longer terms in what seems to be a turning rate environment. This situation should have savers thinking through the risk/reward scenarios.
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 | 3/4 mths | 5/6 mths | 8/9 mths | 1 yr | 18 mths | 2 yrs | 3 yrs |
 |
AA- | 3.00 | 3.35 | 3.50 | 3.50 | 3.60 | 3.50 | 3.50 |
 |
AA- | 3.00 | 3.20 | 3.60 |
3.20 | 3.50 | 3.65 |
3.80 |
 |
AA- | 3.00 | 3.30 | 3.60 | 3.25 | 3.50 | 4.00 |
3.50 |
| Kiwibank | A+ | 3.20 | 3.15 | 3.20 | 3.60 | 3.25 | 3.40 | |
 |
AA- | 3.40 | 3.35 | 3.10 | 3.40* | 3.20 | 3.25 | 3.30 |
 |
BBB | 2.95 | 3.50 | 3.30 | 3.50 | 3.55 | 3.60 | 3.65 |
 |
BBB | 3.10 | 3.30 | 3.70 | 3.40 | 3.40 | 3.40 | 3.70 |
| HSBC Premier | AA- | 2.55 | 2.90 | 2.90 | 2.90 | 2.90 | 2.95 | |
 |
A | 2.85 | 3.50 | 3.35 | 3.40 | 3.40 | 3.45 | 3.55 |
 |
BBB | 2.75 | 3.55 | 3.30 | 3.70 | 3.45 | 3.35 | 3.40 |
 |
A- | 3.00 | 3.15 | 3.15 | 3.20 | 3.25 | 3.30 | 3.40 |
| UDC | A- | 3.00 | 3.35 | 3.60 | 3.60 | 3.65 | 3.45 | 3.45 |
| Wholesale/swaps | 2.03 | 2.08 | 2.10 |
2.27 |
2.46 |
Our unique term deposit calculator can help quantify what each offer will net you.
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