If you’re searching for a secure and rewarding way to grow your savings in New Zealand, term deposits are an excellent option. Whether you’re a seasoned investor or new to the financial world, we’ve got you covered with all the essential information you need.
In this blog post, we’ll explore the ins and outs of term deposits, their benefits, and how they can help you achieve your financial goals. We’ll also provide a curated list of the top term deposit rates currently available in NZ, ensuring you make the most of your hard-earned money.
Let’s delve into the world of term deposits and find the best rates that suit your needs in the ever-changing landscape of New Zealand’s financial market. Let’s get started!
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The Best Term Deposit Rates NZ
Phone: 0800 22 44 33
Rabobank offers attractive term deposit options for investors seeking secure and profitable avenues. For a term of 1 to 11 months, the interest rate stands at 5.90% p.a. with a minimum deposit requirement of $1,000. This plan is ideal for short-term investors looking for quick returns.
Meanwhile, for a more extended investment horizon of 1 to 5 years, the bank offers a competitive interest rate of 5.40% p.a. with a minimum deposit of $1,000. Investors have the flexibility to choose interest payments monthly, quarterly, six-monthly, or annually, making it suitable for those seeking regular income.
2. Heartland Bank
Location: Level 3, 277 Broadway, Newmarket, Auckland 1023
Phone: 64 800 852 020
Heartland Bank‘s term deposit offers competitive returns for both short and long-term investors. For an investment period of 1 to 11 months, the attractive interest rate of 5.80% p.a. is sure to catch the attention of those seeking quick returns. With a minimum deposit of just $1,000, it’s an accessible option for many.
For those looking for a more extended investment horizon, the 1 to 5-year term deposit is an excellent choice. With a steady interest rate of 5.30% p.a. and interest payments made every three months, investors can enjoy the benefits of compounding over time. The minimum deposit of $1,000 ensures accessibility to a broader range of customers.
Phone: 0800 727 2265
SBS. For short-term goals, invest for 1 to 11 months at an impressive 5.40% p.a. Interest is paid at maturity, allowing you to maximize your returns conveniently. The minimum deposit is only $1,000, making it accessible to a wide range of individuals.
For more extended investment horizons of 1 to 5 years, the rate rises to 5.70% p.a. Invest for 12 months and receive interest upon maturity. Again, the minimum deposit is only $1,000.
Phone: 0800 872 226
TSB. For short-term investors, their 9-month Term Deposit boasts an impressive 5.40% p.a. interest rate. With a minimum deposit of just $1,000, you can watch your money grow steadily until maturity.
For those looking to invest for the long haul, TSB’s 5-year Term Deposit offers a substantial 5.00% p.a. interest rate. Enjoy the convenience of interest payment at maturity, and start building your financial future with a minimum deposit of $1,000.
5. Co-operative Bank
Phone: 64 800 554 554
Co-operative Bank. For short-term investors, enjoy an impressive interest rate of 5.65% p.a. for a term of 1 to 11 months. You can opt to receive monthly interest payments or receive it all at maturity after just 9 months.
For those seeking a longer investment horizon, our Term Deposit offers a competitive interest rate of 5.30% p.a. for a term of 1 to 5 years. You can decide whether to receive monthly interest payments or let it accumulate until maturity over the course of 4 years.
6. Kiwi Bank
Phone: 64 4 473 1133
Kiwibank offers attractive term deposit options for investors seeking secure and rewarding avenues. For an investment term of 1 to 11 months, enjoy a competitive Interest Rate of 5.65% p.a., with a minimum deposit requirement of $10,000. Opting for a 9-month term allows interest payment at maturity, ensuring maximum returns.
For those looking for more extended investment horizons of 1 to 5 years, Kiwi Bank offers a compelling Interest Rate of 5.20% p.a. Choose a 2-year term and receive interest payment at maturity, ensuring growth on your investment.
How do term deposits work in New Zealand?
You deposit a fixed amount for a set term (e.g., 6 months) and earn interest. At the end of the term, you can withdraw the principal and interest earned.
What are the benefits of term deposits in New Zealand?
Term deposits offer low-risk, predictable returns, making them ideal for those who want to safeguard their savings and earn interest over a specific time.
Are term deposit rates the same across all banks in New Zealand?
No, rates vary between banks and depend on factors like the term length and the bank’s policies.
Can I access my money before the term ends?
Withdrawing before the term ends usually incurs a penalty, resulting in reduced interest earnings.
Is the interest earned on term deposits taxable?
Yes, interest earned on term deposits is subject to income tax in New Zealand.
Can I have multiple term deposits at once?
Yes, you can open multiple term deposits with different banks or the same bank, offering flexibility in managing your savings.
What happens when the term deposit matures?
Upon maturity, you can choose to reinvest the principal and interest, withdraw the funds, or set up a new term deposit.