Rates Update: Banks tweak short term rates

RaboDirect increased its six-month deposit rate by 10 basis points to now offer 5.15%  and the best rate among all the major banks. But Kiwibank cut the deposit rate for the same term by the same 10 basis points to offer the second best rate of 5.10%.

RaboDirect also raised its nine-month deposit rate by five basis points to 5.20% but the leader in that term remains Bank of New Zealand at 5.30%. But to get BNZ's best rate one has to deposit at least $5,000 while for RaboDirect a minimum $1,000 is sufficient to get the 5.20% rate.

In the 90-day space, RaboDirect cut rate by 15 basis points to now offer 4.85% and market leader ASB also cut its rate by 10 basis points to offer 4.90%.

In a surprise move, BNZ which has traditionally been a market leader in the five-month term cut its rates sharply, leaving ANZ with the top rate there at 5%.