Westpac introduced a 10-month special, at 8.80% which is pitched to go up against the one-year interest at maturity rate from other banks and to compliment its 30-day rolling term deposit which is sitting at 8.10%.

Also it has removed its 15-month special.

A fall in wholesale rates has been driving term deposit rates lower. This is illustrated in the one-year IAM market, which as depositrates.co.nz has reported, has been the battle scene for much market action.

Late last year the top rates were getting up to 9.00%, now the leaders in this sector, ANZ and Kiwibank have the rate down at 8.75% and 8.80% respectively. National Bank cut its one-year IAM rate, yesterday, from 8.70% to 8.60% and also lowered its 18-month rate 15 basis points to 8.75%.

However, not all bank rates have been down. ASB and Bank Direct increased their nine and 12 month specials slightly.

Building society SBS, which tends to compete closely with banks, has a special of 8.50% for terms of between three and six months.

During the week only one finance company moved rates and that was mid-sized, Canterbury-based firm Mascot. It made small increases to most of its rates.

Amongst the sharebrokers Forsyth Barr decreased the rate on its US dollar denominated call account, to 3%, in response to the surprise Federal Reserve decision to lower its cash rate.