Solid response sees South Canterbury extend deposit rate special

Chairman Bill Baylis and chief executive Sandy Maier said nearly two-thirds of respondents to the offer rolled over their investments for a longer period, and helped "significantly" reduce the looming maturities when the government's initial retail deposit guarantee scheme was scheduled to end in October.

"We encourage you to take advantage of this 8.25% p.a. rate while the opportunity is available," Baylis and Maier wrote in a letter to investors. "As we are significantly reducing our ‘wall of maturities' it is likely we will revisit our interest rates on offer and adjust them downwards to meet the market as we move forward."

South Canterbury has been under intense scrutiny over the past two weeks after the government placed owner Allan Hubbard and some of his business interests under statutory management over allegations of lending irregularities.