Banks tussle in 6 month deposit space; Allied Farmers looks long

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The banks had a tussle in the six-month space this week as the competition for deposits continues to run unabated, in the same week Marac introduced non-guaranteed rates.

Sunday, January 24th 2010, 9:12PM

Kiwibank raised its six-month term 60 points and ASB increased its rate by 20 points, while Westpac and ANZ National cut their six-month rates 60 and 40 points respectively. BNZ upped its six-month rates 165, 160 and 155 points for deposits of $10,000, $50,000 and $100,000 respectively.

Kiwibank cut its five-month term by 75 points and raised its two- through four-year terms by 25 points, while ASB cut its nine-month and four-year offers by 25 points. Westpac trimmed its 120-month rate by 20 points, and ANZ National increased its nine-month deposit rate by 50 points.

Meanwhile Marac introduced deposits not covered by the government's retail guarantee scheme, offering existing investors 6% for six months and 7% for 12-month terms, a premium of 75 and 125 basis points respectively.

Allied Farmers staked out longer-dated deposits, lifting its two-year rates by 75 points and its three- through five-year rates by 50 points. Rabo raised its two-year rates by 5 points and cut its three-year offer by 5 points and its four- and five-year offers by 10 points.

Credit Union North raised its two-month rate by 25 basis points and its 12-month rate by 15 points.

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