PGG Wrightson eyes 90-day deposits

For deposits less than $10,000, PGG cut 12-month deposit rate by 125 basis for excluded deposits but for guaranteed it reduced the rate by a smaller 80 basis points.  The new rate is 4.70% for guaranteed and 5.70% for non-guaranteed. The new pricing is interesting considering Marac Finance who has a better rating of BB+ is offering a higher rate of 5.50% and 6.25% respectively.

Fisher & Paykel, who has a similar BB rating, is offering a lower 4% rate for guaranteed deposits but a much higher 6.75% for non-guaranteed.

Equitable Mortgages is offering the highest 6.50% rate for guaranteed deposits and 7.25% rate for non-guaranteed deposits. Among the guaranteed lot, this company is sitting lowest on the rating scale at BB-.

It seems PGG is keen to attract short-term deposits and its 5.40% rate for a non-guaranteed three-month deposit is the highest among all guaranteed finance companies. Marac comes closer at 5.25% and Wairarapa Building Society is also offering 5.25% for over $5,000 deposit.