Finance Direct takes big steps in deposit rate competition

Finance Direct, which is partly owned by NZF, was the main mover with rates last week, while Westpac was the only bank to adjust term deposit rates.

Sunday, 31 January 2010

by Paul McBeth

Finance Direct, which is partly owned by NZF, took some big steps across the board in the ongoing competition for retail deposits, boosting its six-month rate 150 basis points, its 12-month rate 225 basis points, and its 18 month rate 175 basis points. It lifted its two-year rate by 75 points, and its three- through five-year rates by 85 points.

FE Investment raised its 12-month, 18-month, and two year terms 20, 10, and 20 points respectively.

HBS Building Society lifted its 12-month rate by 100 points, while PSIS raised its nine-month term by 35 points. Heretaunga Building Society increased its six-month offer by 15 points and its 12-month term by 20 points.

Nelson Building Society cut its six-month and nine-month terms by 20 and 35 points respectively, and Credit Union South cut its 12-month term by 25 points while lifting its two-year offer by the same amount.

Westpac, the only bank to make any moves this week, cut its six-month rate by 35 and 40 points for $5,000 and $10,000 deposits respectively, while raising its 18-month deposit rate by 20 points.

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