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.