ANZ pushes down term deposit rates, seemingly confident rivals will follow even though the gap with those rivals is unusually wide. Kiwibank follows with comprehensive cuts. Low loan demand bolsters their shift

At the same time ANZ cut some fixed home loan rates, they cut all their term deposit rates. (The table below is updated with Kiwibank's cuts to every term.)

And that leaves them with the lowest rate card among any bank, and by quite a margin.

The rate cuts were hardest at the shorter durations where most savers hold their funds.

For example, ANZ's cut to its two, three, five and nine month rates was -30 bps. They cut their one, four, six and eighteen month rates by -25 bps.

These sharp reductions have positioned their rate card -20 to -30 bps below what their main rivals are offering.

And note in the table below the emergence of longer term rates below 4%.

Either they are confident others will follow them down, or they are responding to a weak loan market that in turn means they need lower rates to offer borrowers to entice them into their camp. Probably both.

Given that loan demand isn't strong at present, the background economic situation is one of high uncertainty and basically unfriendly for business borrowing (when bank risk appetites are being pulled back). Supporting these two trends are lowish wholesale rates, and rising risk premiums.

Savers suffer from the risk premium rise. Home loan borrowers benefit because their assets is regarded as preferred security (and doubly so when the capital backing required is a half to a third of business lending). Borrowers with long-term stable salaries outclass the self-employed or SME owners with less certain income prospects.

Adding the international trade situation to the mix, this is the worst outlook for savers since the GFC.

Loan demand is expected to be stunted, except for zombie borrowers, so another reason risk premiums will be rising.

Banks don't need saver balances in the same way they did recently, and even though that was receding, the pace of change is likely to pick up to the disadvantage of savers. If loan demand is facing economic headwinds, then savers can't expect to be paid much. Yield expectations are getting reset very much lower, pushed down by those risk premiums.

At the same time, the taxpayer-guaranteed Deposit Compensation Scheme is less than 75 days away from being launched on July 1, 2025. That means risk-free will be extending to most covered institutions from the perspective of many savers, and this will be another influence depressing savings offer rates. (Banks have a compulsory new fee they must pay for the DCS coverage.)

We will update this page as changes are announced over the next few days..

When you invest, always check how interest is compounded. Depending on how much you are committing, compounding more often is materially better. But some banks advertise their "interest at maturity" rates different to their compounding rates, which for some can be set a little lower. Both Kiwibank and Rabobank do this, although most other main banks don't.

Use the calculator at the foot of this article to see the differences.

We should also point out that after-tax returns can be enhanced for some savers with higher tax rates, by the choice of PIE structures. Not all banks offer these, but most of the main banks do. For a nine month bank offer, they can be boosted by about 30 basis points going this way. In some cases that will make up any difference, or more.

Always ask a bank for a better rate. Many bank staff have discretion to offer more than the advertised rate. (And check your bank's app offers as they too are often enhanced to retain you). But in this environment don't get your hopes up for a positive response. Carded rates are likely to now be the 'best rate', except in quite special circumstances.

Use the term deposit calculator here, or the one below the table, to calculator your expected net returns.

The latest headline term deposit rate offers are in this table after the recent changes over the past month. The pink background colour-code indicates 5%+ rates still available. The yellow colour code for those under 4%. Bolded rates are the "best-bank", the highest carded rate from any bank at this time. This table is updated with the Kiwibank cuts.

for a $25,000 deposit April 15, 2025	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Main banks
ANZ	AA-	3.65	4.05	4.00	3.90	3.90	4.00	4.05
	AA-	4.00	4.15	4.30	4.20	4.10	4.05	4.25
	AA-	3.85	4.15	4.10	4.10	4.05	4.10	4.20
	A	3.70	4.10	4.00	4.00		4.00	4.00
	AA-	3.85	4.20	4.30	4.10	4.20	4.20	4.20
Kiwi Bonds. 'risk-free'	AA+		3.50		3.50		3.50
	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Other banks
Bank of China	A	4.05	4.45	4.40	4.35	4.25	4.20	4.25
China Constr. Bank	A	3.85	4.25	4.20	4.20	4.20	4.20	4.20
Co-operative Bank	BBB+	3.70	4.20	4.15	4.20	4.10	4.10	4.20
Heartland Bank	BBB	4.10	4.45	4.40	4.30	4.30	4.30	4.40
ICBC	A	3.95	4.40	4.30	4.25	4.20	4.20	4.30
	A	4.00	4.35	4.30	4.20	4.20	4.15	4.25
	BBB	4.00	4.30	4.30	4.20	4.20	4.20	4.20
	BBB+	3.90	4.30	4.30	4.20	4.20	4.10	4.20
Non-Bank Deposit Takers	Rating	3/4 mths	5 / 6 / 7 mths	8 - 11 mths	1 yr	18mth	2 yrs	3 yrs
Community institutions
First Credit Union	BB	4.25	4.50	4.45	4.35	4.25	4.25
Heretaunga Bldg Society		3.90	4.35		4.30		4.25
Nelson Building Society	BB+	3.40	3.85	3.85	3.80	3.80	3.70	3.70
Police Credit Union	BB+	3.90	4.20	4.25	4.15	4.10	4.05
UnityMoney	BB	3.80	4.00	3.90	3.85	4.10	4.05	4.15
Wairarapa Bldg Society	BB+	4.00	4.40	4.40	4.40	4.30	4.30
Finance companies
Christian Savings	BB+	4.00	4.45	4.40	4.35	4.30	4.30	4.45
Finance Direct			3.95		5.35	5.85	5.55	5.15
General Finance	BB	4.10	5.25	5.40	5.50	5.25	5.00	4.40
Gold Band Finance	BB-		3.75	3.75	6.40	6.20	5.75	5.75
Liberty Financial	BBB	3.95	5.15	5.15	5.20	4.80	4.80	4.70
Mutual Credit Finance	B+				6.00	6.00	5.95	5.75
Xceda Finance	B+		6.00	5.80	5.70	5.60	5.50	5.00