After a flurry of activity from banks in the short-term deposit space, it was a quiet week as borrowers likely took a breather to analyse the impact of their recent moves.

RaboDirect's 5.00% rate on 90-day term deposits is the best offer among major banks in the short-term space but many may consider Kiwibank's same rate on Notice Saver as a more attractive option. Kiwibank's product, however, requires a minimum investment of $2,000 and 32 days notice but is PIE compliant and can offer greater after-tax returns.

Non-bank deposit taking institutions are likely to come under focus in the coming weeks following a surprise receivership announcement by Equitable Mortgages late Friday. The unexpected development may prompt investors to once again look in to the merits of investing in finance companies, with or without the benefit of government's extended guarantee.

Last week saw Asset Finance raise the rate on 12-month debentures to 9.50% for a minimum investment of $500. That makes it the best rate behind FE Investments 10.00% but the latter requires a minimum investment of $5,000.

Asset Finance also cut rate for 2-5 year terms but at 10.75% on five year debentures, the B-rated company now offers the best interest rate.

The only other change came from PSIS which cut two-year deposit rates by 15 basis points, after raising that rate by 25 basis points in early October. At 5.85% the new offer is beaten by some credit unions and building societies who are offering 6.00-6.25% rate.