More big increases in finance company rates
Deposit Rates Market Report: Some finance companies are making significant increases in their rates on offer reflecting two things.
Tuesday, October 16th 2007, 6:50AM
During the past week we have seen Asset Finance make some large increases, some 2.25% higher than previously.
Its one-year rate is 10.95% and 11.50% for more than $50,000. Meanwhile it is offering 11.95% for 18 months and 12.50% for this term when amounts of more than $50,000 are invested.
Also Instant Finance put out a special two-year rate of 11.25%.
Of the big finance companies to move we recorded changes across the Hanover Group, with increases to Hanover, FAI and United rates.
Meanwhile banks which have adjusted their rates are generally just tweaking their offerings around the one year mark.
As noted by depositrates.co.nz, the most competitive term is 12 months with interest paid at maturity.
ANZ, National and KiwiBank all added a little more to their offerings in this space with IAM rates of around 8.75%.
Raboplus, which increased rates across the board, put its one-year rate is up 5 points to 8.65% which leaves it behind the other banks and their IAM specials.
Meanwhile Bank Direct put an extra 10 points on its six-month rate and National Bank put out a new 18 month, interest at maturity rate of 8.75%.
As noted RaboPlus made a number of increases, the largest of 15 points, was to its five year rate which now sits at 7.85%.
The oddest movement during the week was a decrease in rates offered by KiwiBonds, (the government). KiwiBonds are the safest option available to retail investors, however the rates don't look particularly appealing in this market. It is paying 7.25% for six months, 7.00% for a year and 6.75% for two years.
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