Deposit rate war moves to 12 month space

Eight companies boosted their 12-month rates as competition for deposits continues to run unabated by rising fixed mortgage rates.

Tuesday, 27 October 2009

Kiwibank increased 12-month terms 60 basis points, while Rabobank, and First Credit Union upped theirs 25 points and Marac raised its rates by 50.

Public Trust cut the 12-month rate on $5,000 terms 50 points, but increased $10,000 deposits 10 points, UDC increased it 35 points and 25 points for the respective terms, while ASB and Bank Direct boosted its rates 45 points.

Marac moved away from the longer terms, cutting three-, four- and five-year rates by 50 points, and increasing its nine-month rates 100 points for $1,000 deposits and 90 points for $50,000.

It raised three month rates 50 and 40 points respectively, and introduced a six month special of 5.75% and an 18-month special of 6.75%.

UDC upped its rates in 18-month terms 55 points and 45 points for its $5,000 and $10,000 deposits, and raised two-year terms 35 and 25 points.

Bank of New Zealand raised 18 month terms 95 points 90 points, and 85 points for its $10,000, $50,000 and $100,000 deposits, and raised its $20,000 and $50,000 bonds 95 points and 85 points respectively. Public Trust slashed its $5,000 deposits 50 basis points in the 18-month, and two-, three-, four- and five-year rates, while boosting the same terms for its $10,000 deposits by 55 points, 50 points, 30 points, 20 points and 15 points respectively.

Equitable removed its unit rates as it is no longer accepting or offering investments in Mortgage Income Trust Units.

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