ASB increases term deposits to rates not offered by major NZ banks for over decade

  • 12/10/2023

ASB has increased its term deposits for the 12th time this year, now offering the best rate to savers out of the country's main banks.

Some of its terms are now at rates not offered by major New Zealand banks since 2008, when the Global Financial Crisis was in full swing.

Five ASB term deposits have increased by between 10 and 30 basis points and now sit at 6 or 6.1 percent.

ASB executive general manager for personal banking Adam Boyd said the bank is seeing high demand for term deposits as customers take advantage of the current high-interest environment.

He said the number of 12-month term deposits taken out by ASB customers has doubled in the past year and nearly three-quarters of its customers hold a savings product or term deposit with ASB.

ASB said there has been no changes to home lending rates which were raised last month.

Last month, ASB became the first big retail bank in years to raise mortgage rates above 7 percent with other major banks soon following suit.

This is despite the Reserve Bank (RBNZ) holding the Official Cash Rate (OCR), which effectively sets interest rates, for four consecutive meetings. The OCR is currently at 5.5 percent.

Term deposit rates for one year per annum:

  • ASB – 6.1 percent
  • Kiwibank – 6.05 percent
  • BNZ – 6 percent
  • ANZ – 6 percent
  • Westpac – 5.9 percent