Bank Term Deposit Rates

[kiwi2007]

Done and dusted – are term deposits at a peak?

https://www.asb.co.nz/content/dam/asb/documents/reports/term-deposits/asb-term-deposit-report-June-2023.pdf?et_rid=NzQyMTM3NjU1NjES1&et_cid=7394776

[Onemootpoint]

SBS Bank pushes its one year term deposit rate offer to a 15 year high of 6.5% and well above every other bank. We are moving into an unfamiliar zone where some TD offers are higher than inflation

https://www.interest.co.nz/personal-finance/123007/sbs-bank-pushes-its-one-year-term-deposit-rate-offer-15-year-high-65-and


Interest paid monthly it seems.
https://www.sbsbank.co.nz/invest

[CalBe55]

SBS Bank pushes its one year term deposit rate offer to a 15 year high of 6.5% and well above every other bank. We are moving into an unfamiliar zone where some TD offers are higher than inflation

https://www.interest.co.nz/personal-finance/123007/sbs-bank-pushes-its-one-year-term-deposit-rate-offer-15-year-high-65-and


Interest paid monthly it seems.
https://www.sbsbank.co.nz/invest

This looks like increased competition between banks to attract deposits. I wonder how much other banks will raise this rate and whether they will raise it at all?

[mcdongle]

8% Capital bonds from SBS as well.

https://www.sbsbank.co.nz/sbs-capital-bonds-2

[Onemootpoint]

This looks like increased competition between banks to attract deposits. I wonder how much other banks will raise this rate and whether they will raise it at all?

Their special rate has now come back down to a mere 6% on the 1 year. The main banks are hovering just under 6% for the moment.

[Onemootpoint]

It had to happen....the first of the 5 main banks to offer a 6% term deposit rate on an 18 month term at ANZ. Will the others follow suit? Probably.

[kiwi2007]

It had to happen....the first of the 5 main banks to offer a 6% term deposit rate on an 18 month term at ANZ. Will the others follow suit? Probably.

And they are doing. BNZ's online 18 month rate now 6% and Westpak is first off the block with 6% for 2 years. Where will it all end I wonder?

[Onemootpoint]

And they are doing. BNZ's online 18 month rate now 6% and Westpak is first off the block with 6% for 2 years. Where will it all end I wonder?

The FED's JP last week hinted that after a few months of holding the current rate it may go higher yet if the economic numbers don't please them. I wonder whether our RB will be keen to do the same. I am not so sure they would want to further increase, but who knows.

[Nizzy]

Heartland offering TD 6.15% for 8 months to existing customers

[Onemootpoint]

In terms of advertised rates, each of the 5 main banks - except BNZ - offer 6% at either 12, 18 or 24 months.

[kiwi2007]

ASB bank moves the 6% term deposit rate offer to a six month term, and raises its three year offer to a market-leading 6.10%

https://www.interest.co.nz/personal-finance/124731/main-bank-moves-six-percent-rate-offer-six-month-term-and-raises-its-three

Heartland looking uncompetitive for a challenger bank especially for rates after one year.

[kiwi2007]

https://www.chrislee.co.nz/taking-stock

"......For some time we might find a 5% return, without capital volatility, is rather more appropriate for most retired investors, than the hope that a new government will energise the business sector and help that sector to magical levels of profits and investment returns."

I guess this applies to both bonds and bank deposits.

Over the years I think the average annual return from the worlds stock markets has been in the region 0f 7 or 8% so if you can get 6 or 7% from a deposit or a bond and a 'guaranteed-ish' return of your investment it really seems to make sense. (But lacking in 'excitement'').

[kiwi2007]

And down we go: Inevitable really and I'd imagine others will follow PDQ.

ANZ has cut its two-year term deposit by 25 basis points to 5.75 per cent, while its four-year term deposit rate drops 15 basis points to 5.3 per cent and its five-year rate by 25 basis points to 5.2 per cent.

https://www.nzherald.co.nz/business/interest-rates-anz-cuts-mortgage-and-deposit-rates/DZYZ3B355NBYZMI3LPIV6HY7WE/

[winner (n)]

And down we go: Inevitable really and I'd imagine others will follow PDQ.

ANZ has cut its two-year term deposit by 25 basis points to 5.75 per cent, while its four-year term deposit rate drops 15 basis points to 5.3 per cent and its five-year rate by 25 basis points to 5.2 per cent.

https://www.nzherald.co.nz/business/interest-rates-anz-cuts-mortgage-and-deposit-rates/DZYZ3B355NBYZMI3LPIV6HY7WE/

Punters better lock in long term rates >5%pa pretty quick before they have to face up to 4% or even 3% rates

[BlackPeter]

Punters better lock in long term rates >5%pa pretty quick before they have to face up to 4% or even 3% rates

Obviously - they could as well buy REITS. Dividends paid through a PIE account command a friendlier tax-regime than interest rates from savings accounts (or bonds).

Ah yes, and Interest rates down means REITS going up - and assuming you buy them for the dividend, you don't even need to pay taxes for the capital gains.

But yes, in both cases - don't wait too long. Interest rates will go down at some stage and REITS will go up in sync.