One offer comes with an additional incentive
It seems competition remains in the industry as Kiwibank follows BNZ with new higher term deposit offers, setting its higher rate at just 200 days.
BNZ offered 2.88% one year rate until February 07 – and Kiwibank matched its competitor by launching a 2.85% rate for 200 days and raising its own one-year offer to 2.70%.
According to Interest.co.nz, Kiwibank’s new 200-day offer is only available with interest at maturity and comes with an additional incentive that backs up its current mortgage promotion.
“Get a Term Deposit at 2.85% p.a. for 200 Days with a minimum investment of $10,000 between 20 January – 9 February 2020 and you're automatically in the draw to win one of three trips to Fiji,” the bank said on its website.
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The term deposit promotion is available until February 09 while the 200-day rate may run longer as it does not have a specific end date – only “subject to change.” The 200-day offer is also available as a PIE, which boosts the effective/equivalent rate to over 3%.
On the other hand, BNZ’s 2.88% is the highest rate currently on offer from any bank for any term, which brings to light one-year wholesale swap rates rising +4 bps recently and +30 bps in the past three months. The bank also had its one-year term deposit offer at 2.60% in mid-October, which was the first time it was reduced to this level.
