Banks push up call rates

Weekly Rates Update: Investors and savers had plenty of news to digest last week, not least the string of failures or non-failures. Adding to this was a series of rate increases.

Monday, 27 August 2007

ASB subsidiary Bank Direct bumped its savings account (it doesn't have a true online saver like other banks) up 10 points and the rates on its high interest transaction account, for amounts of more than $100,000.

Whenever there are rate increases Rabobank isn't far away. It too has increased its on call account 15 points to 8.00% and many of its term deposit rates. At the longer end of the curve (three, four and five years) rates are up between 10 and 20 points and for shorter durations (less than six months) there are smaller increases.

HSBC tweaked its TD rates for amounts of more than $10k, increasing them by between 10 and 30 points, although 6, 9 and 18-month rates remained unchanged.

Meanwhile, TSB adjusted rates on its Premier cheque account. PSIS, our one co-operative launched a new special during the past week of 8.20% for 6-months, compounding interest and minimum of $5k.

Only two finance companies reported changes, Fisher and Paykel Finance put up all rates from 3 months to 3 years by margins of between 5 and 15 points. The company, which is part of NZX-listed Fisher and Paykel Appliances, told its annual meeting that the business was performing well, although there were failures in the sector.

Likewise St Laurence increased all its rates by 10-20 points. It too disclosed performance information to the market, saying that it was in a "sound financial position with strong assets and high levels of equity."

Last week we added rates from Cymbis and Rifleman to the site.

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