ANZ cuts longer-term deposit rates, Will Kiwibank follow?

At 6.00% for five-year deposit rates, ANZ National's rate is behind Bank of New Zealand's 6.50% , Kiwibank's 6.75%, Westpac's 6.00-6.75% and even ASB's 6.20%.

The surprising element is that rates were lowered when swap rates actually witnessed an increase during the week.  The five-year swap rate for example rose to around 4.50% from 4.43%t at the start of the week.

RaboDirect also made a small five-basis-point cut in five-year deposit rate, but at 6.70% it is just five basis points below the maximum rate on offer from banks. It now remains to be seen if Kiwibank follows up on ANZ's move.

The six-month deposit rates saw a lot of action but mainly from finance companies with Napier Building Society leading with a 25-basis-point hike. However, despite the hike, Napier's 5% rate is below Heretaunga's now 5.10% rate, and Wairarapa's 5.25% among building societies.