Following somewhat arrogant comments by their Group CEO that 'ANZ New Zealand doesn't have to offer the best deposit rates so it doesn't', the local unit has moved quickly to squash his observation to ANZ's analysts and investors.
Late Monday it raised its term deposit rate offers up to the top of the range already offered by some of its main rivals, notably ASB and Westpac.
Left un-responded, those comments could have been damaging in the market. As it is, only ANZ's pride has been hurt, in that the bank CEO Shayne Elliott has just reinforced the image of a 'typical big bank boss'. And that is especially after ANZ NZ reported a massive $2.3 bln profit for the year to September 2022.
But ANZ New Zealand's customers can now access properly competitive term deposit rates. To be fair these aren't the best rates in the market, only at the top of the range among the five big banks.
Rabobank and China Construction Bank have the highest six month rates. SBS Bank's 5% is still the highest for a one year term.
After hitting highs, wholesale rates have trended lower in the past ten days. But today that decline stopped. Wholesale rates tend to follow global influences rather than local ones. And tomorrow the RBA will decide its next moves, to be followed by the US Fed. Locally, the local jobs report this week will also have an influence.
An easy way to work out how much extra you can earn is to use our full function deposit calculator. We have included it at the foot of this article. That will not only give you an after-tax result, you can tweak it for the added benefits of Term PIEs as well. It is better you have that extra interest than the bank (and especially if you are in the 39% tax bracket - PIEs are taxes at 28% flat).
The latest headline rate offers are in this table after the recent increases.
| for a $25,000 deposit November 1, 2022 |
Rating | 3/4 mths |
5 / 6 / 7 mths |
8 - 11 mths |
1 yr | 18mth | 2 yrs | 3 yrs |
| Main banks | ||||||||
| ANZ | AA- | 2.50 | 3.75 | 4.10 | 4.50 | 4.50 | 4.50 | 4.50 |
 |
AA- | 2.50 | 3.75 | 4.10 | 4.50 | 4.50 | 4.50 | 4.50 |
 |
AA- | 2.50 | 3.75 | 4.00 | 4.50 | 4.35 | 4.40 | 4.45 |
 |
A | 2.50 | 3.75 | 4.00 | 4.50 | 4.50 | 4.35 | |
 |
AA- | 2.50 | 3.75 | 4.00 | 4.50 | 4.50 | 4.50 | 4.50 |
| Other banks | ||||||||
| China Constr. Bank | A | 3.35 | 4.20 | 4.40 | 4.55 | 4.55 | 4.65 | 4.75 |
| Co-operative Bank | BBB | 2.10 | 3.70 | 4.00 | 4.50 | 4.50 | 4.65 | 4.70 |
| Heartland Bank | BBB | 2.50 | 4.00 | 4.30 | 4.70 | 4.50 | 4.50 | 4.50 |
| HSBC | AA- | 2.30 | 3.65 | 4.00 | 4.30 | 4.30 | 4.35 | |
| ICBC | A | 2.95 | 3.90 | 4.35 | 4.55 | 4.50 | 4.60 | 4.60 |
 |
A | 2.85 | 3.95 | 4.30 | 4.70 | 4.65 | 4.75 | 4.75 |
 |
BBB | 2.20 | 3.60 | 3.80 | 5.00 | 4.40 | 4.50 | 4.40 |
 |
A- | 2.20 | 3.60 | 4.00 | 4.50 | 4.55 | 4.60 | 4.70 |
Term deposit rates
Select chart tabs
Term deposit calculator
40 Comments
A good example of this is the Auckland Rugby team of old under the Z Brook and Fitzpatrick regimes. Time was when they were the world leading exponents of professional fouls. Winning at any cost. After living in other regions and returning to Auckland I hated the Auckland team with a passion. And have never reconsidered this position. Even after the response was to allow for penalty tries. As a consequence I do not watch any rugby now. None.
Pity they can't survive without government help i.e. GFC with out the deposit guarantee they were gone. Guarantee should have come with an equity component.
They hold a privileged position and the RBNZ and govt happy to strengthen their position to enable super profits at expense of all local challengers.
Might be time to have some philosophical discussion of the role of companies in society. And if companies are so predatory that they play out a Tragedy of the Commons with citizens' wealth they undermine their long-term profitability too, so we're into Agency Theory troubles with this CEO.
And also how much taxpayers should be subsidising banks' profits, really? They're able to reap these profits because of society's support.
Edit: also, who on earth thinks companies don't invest heavily in PR in the first place? We didn't get into a situation of having house prices and rental yields subsidised by taxpayers, property speculation crazily undertaxed, and banks being subsidised by the Reserve Bank (ultimately, taxpayers) without some hefty PR along the way in the first place.
https://en.wikipedia.org/wiki/Accountable_Capitalism_Act
Introduced in 2018 - still in Committee. Seems to me the Biden administration really doesn't want to have that philosophical discussion.
ANZ Group CEO Shayne Elliott says ANZ NZ doesn't have to offer the best deposit rates so it doesn't
Right now, the 50-year trend in globalization is reversing. One of the consequences of deglobalization will be higher prices for decades to come. Gewgaws will no longer be cheap. Corporate profit margins will diminish. Link
Following somewhat arrogant comments by their Group CEO that 'ANZ New Zealand doesn't have to offer the best deposit rates so it doesn't'
"Somewhat"...how generous you are. That is sheer arrogance. Say it for what it is.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.