What actually drives changes in term deposit rates
A few factors influence term deposit interest rates across New Zealand. One of the key ones is the Official Cash Rate (OCR), set by the Reserve Bank of New Zealand. This has an impact on short term rates with the market and Reserve Bank's outlook on the direction of rates influencing medium- and longer-term rates. Broader economic conditions and the cost of funding for banks also play a part.
As a customer‑owned co‑operative bank, we take these factors into account when reviewing our rates. This helps ensure the rates we offer are fair, reflect what’s happening in the wider New Zealand market, and support a sustainable, long‑term approach.
What this means for you:
Your fixed term deposit rate is set with the bigger picture in mind, so you can feel confident your savings are earning a rate that reflects current market conditions, without needing to follow every economic update yourself.
Everyone’s situation is different, and it can help to consider what suits your plans.
Are our rates competitive?
We keep an eye on what’s happening across the market, including the rates other NZ banks are offering, when we review ours. This helps us understand where our rates sit and enables them to be fair and competitive.
Because we’re owned by our customers, our approach goes beyond rates alone. We balance competitive returns with a banking model that puts people first, supports local lending, and reinvests back into the communities we serve.
What this means for you:
You can compare our rates with confidence and choose a term that suits your savings goals.
How long can you lock in your rate?
You can choose a term from one month to four years, depending on what works for your plans.
What this means for you:
You can pick a timeframe that aligns with what you’re saving for.
Will your rate stay the same?
Once you’ve chosen a rate and a term, it stays fixed for that period.
What this means for you:
You’ll know exactly what rate applies over your chosen timeframe, which can make planning a little easier.Are there any conditions?
There are a few things to keep in mind:
- A minimum deposit of $2,000
- Your money is set aside for the term (early withdrawal may be approved in specific situations, with reduced interest)
What this means for you:
Everything’s laid out upfront, so you can easily decide whether a term deposit suits you
More than a term deposit
When you choose a term deposit with us, you’re doing more than growing your own savings. Your money helps support the lending we provide across New Zealand, including helping more Kiwis into their first homes.
As a customer‑owned bank, we are focused on long‑term value for our customers and the communities we serve.
Learn moreReady to make your money work harder
You may also be interested in
Each of our term deposit guides below focuses on a specific topic, so you can easily find the information that’s most helpful for your goals, when you need it, now and as your plans evolve.
Understanding term deposit early withdrawals
Things change; we get that. To help you feel confident about your options, we’ve put together some helpful information explaining how early withdrawals work, what you can expect, and why a reduced interest rate may apply.
Learn moreWhat happens when your term deposit matures?
When your term deposit reaches its maturity date, your term deposit has finished the term you have chosen. Learn about what happens next.
Learn moreCompounding interest, how it works and why it matters
Compounding interest helps your money do more of the heavy lifting by earning interest on both what you put in and what’s already been earned. Over time, small steps today can support your longer‑term goals.
Learn moreHow to choose the right term deposit length
Unsure of what term length to choose? we’ve put together a simple guide that may help you decide what will work for you.
Learn more
Important: This guide shares general information only and isn’t financial advice. It doesn’t consider your personal goals or situation. If you’d like advice for your circumstances, it’s a good idea to speak with a licensed financial adviser.