by Sophia Rodrigues
TSB lifted its one-year deposit rate by 10 basis points and its offer of 5.35% for a minimum deposit of $10,000 is the best offered by a bank in New Zealand. Kiwibank is at 5.30% and ASB is also offering 5.30% for this term.
Nelson Building Society also raised its one-year rate by five basis points to now offer 5.50% but a leader in that segment remains Southern Cross Building Society which is offering 5.70% on non-guaranteed deposits. The difference between the two is Southern Cross's rating which is lower at BB compared with Nelson's BB+ rating.
Among finance companies, General Finance made a big move in the one-year term, increasing the rate by 175 basis points to now offer 6.75%. However, given General Finance is not rated, it will be difficult for the company to attract investors when Fisher & Paykel, a BB rated company, is offering the same rate of 6.75% on its non-guaranteed debentures. There is also NZF Money, a B rated company which is offering an attractive 8.60% rate on deposits below $10,000 and 8.85% on over $10,000 deposits.
And while we call TSB Bank a leader in the one-year term, we notice that Kiwibank continues to market its 5.50% rate on one-year term deposits via its BookaRate specials. Its 5.35% on six-month term is also 15 basis points higher than its regular six-month deposit rate. Rabobank currently has no specials under BankaRate.
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