Highest rate in nearly three years
Kiwibank has announced it is increasing its term deposit rates, including lifting its popular one-year rate by 0.20% to 3%, the highest it has been since August 2019.
Senior manager of borrowing and savings Richard McLay (pictured) said mortgage advisers and first home buyers could benefit from Kiwibank increasing its term deposit rates.
“For customers savings toward their first home, a 3% term deposit provides a steady way to build their deposit for the next year,” McLay said.
“For customers getting closer to their first home, placing their funds into a lower risk option like term deposits makes them less susceptible to market volatility so that they have more certainty on their deposit amount when they reach the home buying phase.”
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McLay said Kiwibank’s lending was primarily funded by its customer deposits.
“When the market interest rates increase, both lending and deposits rates may increase too,” he said.
With the changes to term deposit rates, McLay said customers who held their savings with Kiwibank, would see some options for higher returns available.
“The offer is available today so both new and existing customers are able to take up the offer now if they have available funds,” he said.
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McLay said Kiwibank exists to support the financial security of New Zealand by delivering long-term sustainable value and is offering highly competitive term deposit options, while managing the needs of borrowers also experiencing a rising interest rate environment.
“We appreciate customers with savings are looking to maximise their returns, so Kiwibank is making this easier for them,” McLay said.
“We have a website form so those interested in our special rates can easily sign up. We’ll give them advanced notice of upcoming specials, so they have time to arrange their finances or join Kiwibank.”
The term deposit rate change came into effect on May 09.
