Rates Round Up: Banks nudge each other in short-term deposit rates

After getting competitive in the six-month term, ASB has now set its eye in the 90-day deposit space, raising rate there by a whopping 125 basis points to 5% for amount over $10,000. This is now the highest rate offered by major banks and the only one coming close is RaboDirect which is offering 4.45% but accepts amount as small at $1,000.

ASB's six-month best rate of 5.10% was beaten by Kiwibank which raised the rate by a sharp 65 basis points to 5.15%.

ANZ also made a huge upward adjustment, upping its five-month deposit rate by 100 basis points but is still beaten by Bank of New Zealand which has been a leader position in that term. Meanwhile, a week after lowering the rate on nine-month deposits by 10 basis points, BNZ increased the rate again to 5.30% and maintained its leadership there. Surprisingly, ANZ cuts its rate for nine months by 10 basis points to 5%, thus widening the rate differential with BNZ to 30 basis points.

Terms over one-year were left untouched by banks and the only one to move there was Credit Union North which reduced two-year rate to 5.75%.