Fisher & Paykel and UDC hike rates

Fisher & Paykel Finance hiked its rates across the board by between 25 and 100 basis points and is offering a 50 point premium on reinvested funds. For new deposits, it offers 4.5%, 5%, 5.25%, 5.5%, 6%, 6.5%, 7%, 7.5% and 7.5% for its three-month, six-month, nine-month, 12-month, 18-month, two-year, three-year, four-year and five year terms respectively and its new call rate is 4%.

ANZ-owned UDC upped its two- and three-year terms 25 basis points and its five-year terms 15 points to 5.75%, 6.25% and 7.15% respectively, and a two-year special of 5.75% while SBS introduced a five to nine-month special of 5%.

The competition comes when the Treasury tweaked the government's retail deposit guarantee scheme to give financial institutions greater flexibility to provide both covered and non-covered debt, while also giving them a 14-day window to avoid receivership if they look like they are going to default