ANZ cuts longer-term deposit rates, Will Kiwibank follow?
Last week saw ANZ National giving up position it held with Kiwibank as the market leader among banks for longer-term deposit rates. The bank made a huge 75 basis points cut in five-year and four-year deposit rates, and also lowered three-year deposit rates by 50 basis points.
Monday, September 13th 2010, 7:04AM
by Sophia Rodrigues
At 6.00% for five-year deposit rates, ANZ National's rate is behind Bank of New Zealand's 6.50% , Kiwibank's 6.75%, Westpac's 6.00-6.75% and even ASB's 6.20%.
The surprising element is that rates were lowered when swap rates actually witnessed an increase during the week. The five-year swap rate for example rose to around 4.50% from 4.43%t at the start of the week.
RaboDirect also made a small five-basis-point cut in five-year deposit rate, but at 6.70% it is just five basis points below the maximum rate on offer from banks. It now remains to be seen if Kiwibank follows up on ANZ's move.
The six-month deposit rates saw a lot of action but mainly from finance companies with Napier Building Society leading with a 25-basis-point hike. However, despite the hike, Napier's 5% rate is below Heretaunga's now 5.10% rate, and Wairarapa's 5.25% among building societies.
The best rate among finance companies for a six-month term remains Finance Direct who's offering 6.75%. However, for those looking for the safety net of the government's guarantee Equitable Mortgages' 5.50% looks like an attractive option.
| « How to earn up to 125bps more on call deposits? | BNZ catches up with banks in 18mo term » |
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