Kiwibank and Westpac have both made term deposit moves this morning (Monday).
Kiwibank's website reveals the following changes, confirmed in a release note just received:
- rates for 1 to four months have been reduced by between -10 and -25 bps.
- their six month rate has been raised by +45 to 3.60%. This is the highest six month rate in the market at the moment.
- their one year rate has been cut back from 3.60% to 3.35%, a reduction of -25 bps.
- rates for two years to five years have all be raised, by between +15 and +25 bps.
Kiwibank's highest rate is now 3.85% for five years.
Westpac's website also reveals a change, focused on the two year rate. This is where the Red Bank is focusing its aim, with a 3.70% offer, a rise of +45 bps.
Both the Kiwibank and Westpac offers credit interest at maturity for terms less than one year, and annually for terms one year and longer.
Except, Kiwibank offers a monthly interest option at slightly lower interest rates.
However, Westpac also offers a monthly interest option for its SuperGold product - and for the two year offer than its still at 3.70%.
BNZ's two year special, which will expire at the end of this week, is for a full 4%, but interest at maturity only. (This is equivalent to quarterly compounding interest at 3.90% - but you must wait the full 24 months before accessing the interest.)
You can see the details of term deposit rate changes from last week in this story.
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+ | 3.00 | 3.60 |
3.20 | 3.35 |
3.40 |
3.60 |
|
 |
AA- | 3.40 | 3.35 | 3.10 | 3.40* | 3.20 | 3.70 |
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.
6 Comments
The man 2 - you're dead right, they're not and with lending out stripping deposit growth, and offshore wholesale borrowing more expensive again, that's why both lending and depo rates have hit long term lows, floating rates will be ok fir borrowers next year until they're not and in the meantime fixed rates are disappearing rapidly so that the escape route will be gone for the slow when most needed
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