Kiwibank keeps mum on four-day deposit rate bonanza
Kiwibank is keeping tightlipped about the term deposit rates on offer in its four-day special beginning today, although has admitted they will be "relatively short-term".
Monday, 25 May 2009
by Paul McBeth
The bank has advertised its "TD Tuesday" as a four-day offering with a "special Term Deposit mega rate" and seeks to raise funds as rates remain relatively low. Spokesman Bruce Thompson said the market was always competitive, and promotions like this are usually successful in attracting funds.
"It's a competitive environment out there, but there's an opportunity to attract funds," Thompson said. He wasn't willing to speculate on how much funding the deal would attract, nor predict its impact on the lending market.
In the BNZ Weekly Overview, Bank of New Zealand chief economist Tony Alexander said the cost of funding was relative to lending rates, and as offshore credit lines dried up, New Zealand banks have been forced to tap the domestic market. Alexander pointed out that as banks are forced to pay higher premiums to raise funding, they in turn had to pass this on to mortgage holders, which has kept long-term lending rates relatively high.
The average term deposit rate for between $5,000 and $10,000 at six months is 3.2%, and 3.74% for deposits between $10,000 and $50,000 at the four major banks, according to www.depositrates.co.nz data.
Commenting is closed
Find a Rate
14 October 2016
18 August 2016
20 June 2016
9 May 2016
11 April 2016
Cash PIE Rates
Weekly Updates including news and commentary
Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.
© Copyright 1997-2016. Tarawera Publishing Ltd. All Rights Reserved.