by Sophia Rodrigues
After getting competitive in the six-month term, ASB has now set its eye in the 90-day deposit space, raising rate there by a whopping 125 basis points to 5% for amount over $10,000. This is now the highest rate offered by major banks and the only one coming close is RaboDirect which is offering 4.45% but accepts amount as small at $1,000.
ASB's six-month best rate of 5.10% was beaten by Kiwibank which raised the rate by a sharp 65 basis points to 5.15%.
ANZ also made a huge upward adjustment, upping its five-month deposit rate by 100 basis points but is still beaten by Bank of New Zealand which has been a leader position in that term. Meanwhile, a week after lowering the rate on nine-month deposits by 10 basis points, BNZ increased the rate again to 5.30% and maintained its leadership there. Surprisingly, ANZ cuts its rate for nine months by 10 basis points to 5%, thus widening the rate differential with BNZ to 30 basis points.
Terms over one-year were left untouched by banks and the only one to move there was Credit Union North which reduced two-year rate to 5.75%.
Finance companies were also active last week with NZF Money making some increases in the 1-2 year term. The B rated company is now offering 9.25% for a two-year term which is 125 basis points lower in comparison with similarly rated Asset Finance.
On the other hand, Equitable has cut rates across most tenures for both guaranteed and non-guaranteed debentures. At 5.75% on 18-term term the BB- rated Equitable is now offering 5.75%, even below the 6.50% offered by BB+ rated Marac Finance.
UDC also cut rates from terms from five months to one year, and at 5.25% on five months the finance company is offering just five basis points over 5.20% offered by BNZ.
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