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Treasury takes -75 bps off most Kiwi Bond interest rates, the benchmark for risk-free saving for retail savers
22nd Aug 24, 2:42pm
by
Savers who use the Treasury's Kiwi Bond offers should know that they cut them today, probably not surprising given the recent OCR reduction.
That and declining wholesale rates will have induced them to trim these rates. That means they are now off the high point in the current cycle.
The 'curve' is decidedly inverted now.
Treasury (or more precisely, the Debt Management Office of Treasury) last set these rates on February 2, 2024.
For subscriptions of $1,000 - $500,000 they are now at:
| Maturity | change | Rate |
| 6 months | -25 bps | 5.00 percent per annum |
| 12 months | -75 bps | 4.50 percent per annum |
| 2 years | -75 bps | 4.00 percent per annum |
| 4 years | -75 bps | 3.75 percent per annum |
The official announcement is here.
Savers who value Government-guaranteed term deposits at what are relatively high current rates should assess the current position. Today's cut may not be the last in 2024.
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