New Zealand's largest bank reveals its new higher term deposit rates and we record the rate benchmarks before their rivals announce their positions

ANZ’s response to the Reserve Bank’s OCR cut has been to offer homeowners just -5 bps of the -25 bps rate cut on their floating mortgage rate, but to signal that their term deposit rates will be going up instead.

This is quite a different approach to what we have seen from any bank at previous RBNZ rate cuts.

The ANZ term deposit increases are effective tomorrow, Friday August 12 and will be:

Product Current rate change New rate
  % % %
150 days (5 mths) 3.00 +0.25 3.25
270 days (9 mths) 3.50 special
extended
3.50
18 months 3.30 +0.30 3.60

No other rates are being changed at this time.

ANZ’s Australian bank used a similar strategy there the last time* the RBA reduced rates. The holdback on the borrowing rate is still in place but the term deposit increases were rolled back after about 2 months. There is no suggestion that this will happen in New Zealand, but the behaviour is interesting all the same.

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.

Term PIE rates are here.

So readers can keep an eye on what banks do in response to both the RBNZ rate cut and ANZ’s selective term deposit rate hike, here are today’s benchmarks:

for a $25,000 deposit Rating 1-Jun-15 1-Dec-15 1-Apr-16 1-Jun-16 11-Aug-16
             
AA- 4.20 3.50 3.25 3.25 3.25
ASB AA- 4.20 3.50 3.25 3.20 3.20
AA- 4.30 3.55 3.25 3.25 3.25
Kiwibank A+ 4.25 3.50 3.30 3.30 3.25
Westpac AA- 4.10 3.50 3.20 3.20 3.20
             
BBB- 4.30 3.45 3.30 3.30* 3.15
Heartland Bank BBB 4.50 3.70 3.40 3.40 3.40
HSBC Premier AA- 3.95 3.00 2.90 2.90 2.90
RaboDirect A 4.35 3.60 3.40 3.40 3.40
SBS Bank BBB 4.40 3.60 3.35 3.30 3.25
A- 4.30 3.55 3.30 3.20 3.10
UDC AA- 4.25 3.65 3.45 3.45 3.45

* Originally in error, now corrected

Our unique term deposit calculator can help quantify what each offer will net you.

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