What is a term deposit?
A fixed term investment that lets you choose a timeframe that suits you, from one month to four years and lock in a fixed rate for the whole term. This allows you to know what rate applies over your chosen period.
Featured Term Deposit Rates
6-month term3.55% p.a
Minimum deposit $2,000
12-month term4.00% p.a
Minimum deposit $2,000
48-month term4.70% p.a
Minimum deposit $2,000
Is a term deposit the right way to grow your savings?
A term deposit lets you lock in a fixed return for a set timeframe, which is great if you don’t need immediate access to your money.
If you think you might need to dip into your term deposit before the term ends, one of our savings accounts might be a better fit as early withdrawal criteria and fees apply.
Below is a simple side by side view of our term deposit and savings accounts features and benefits, so you can easily compare them and see which one matches your saving style and goals.
Savings Account Comparison
| Term deposit | Online Saver | Step Saver | Prize Draw Saver | |
|---|---|---|---|---|
| Great for | Term deposit Locking in an investment with a predictable return | Online Saver Simple, everyday saving with full flexibility | Step Saver Building strong saving habits with rewards | Prize Draw Saver Flexible saving with a chance to win |
| Access to your money | Term deposit Locked in for your chosen term (early withdrawal fee may apply) | Online Saver Unlimited access anytime | Step Saver One withdrawal per month to keep bonus interest | Prize Draw Saver Unlimited access anytime* |
| Interest rate | Term deposit Fixed — locked in from day one | Online Saver Variable | Step Saver Variable, with the chance to earn bonus interest | Prize Draw Saver Variable |
| How interest is paid | Term deposit Monthly or quarterly compounding at the end of the term | Online Saver Monthly | Step Saver Monthly (when bonus conditions are met) | Prize Draw Saver Annually on 31 March each year |
| Extras / benefits | Term deposit
| Online Saver Easy to manage via our mobile app and internet banking | Step Saver Earn bonus interest when your balance grows^ and you make no more than one withdrawal in the month. | Prize Draw Saver Eligible customers go into a prize draw each month |
| Who it suits most | Term deposit Savers wanting predictable growth | Online Saver Savers who want simple, flexible saving | Step Saver Savers who enjoy being rewarded for consistent saving | Prize Draw Saver Savers who want simple, flexible saving with the chance to win a prize. |
*Withdrawing funds from this account may mean you are not eligible for the monthly prize draw. See the full terms and conditions here.
^The bonus rate of 1.45% p.a. is paid every month if the account balance, exclusive of interest, is higher at the month end (or on the date the account is closed) than the balance at the start of the month (or on the date the account is opened if the account has been open for less than one month) and no more than one withdrawal is made in the month. If you make one withdrawal within a month, you still need to ensure your balance at the end of the month has grown (excluding interest paid) to be eligible for bonus interest. If you make more than one withdrawal in a month, you'll earn the standard interest rate.A month in this context runs from 8pm on the last day of a calendar month to 7.59pm on the last day of the next month.
How term deposits work
Lock in a fixed term
Set a term that suits your plans and enjoy a rate that stays the same from day one. It’s designed to give you clarity, certainty, and steady progress toward your savings goals. You can find a helpful guide to choosing a term length here.
Choose when you get your interest
If you select an option where interest isn’t compounded, you can receive interest monthly. With compounding interest, the amount is added to your balance during the term, and everything is paid out when your term deposit ends.
Choose how much you invest
You can open a term deposit with a minimum of $2,000 up to $2 million. If you're looking to invest more than $2 million, you will need to talk to one of our team.
Manage it online
No matter where you are, it’s simple to manage your term deposit. Check the details of your investment, the maturity date, update your maturity instructions, or reinvest straight from our mobile app and internet banking.
Ready to make your money work harder
Safety and security of your money
The Government’s Depositor Compensation Scheme (DCS) came into effect on 1 July 2025 and gives New Zealanders more confidence that their savings are safe.
With the DCS, your eligible deposits, including term deposits with The Co-operative Bank, are protected up to $100,000 per institution if that institution (whether it's a bank, credit union, or building society) were ever to fail. It’s designed to give you peace of mind, even in unlikely situations.
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, 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 moreEarly withdrawals – if things change, talk to us
If things change and you need your term deposit money sooner than planned, get in touch. We’ll talk through your situation and help you understand what might be possible.
There are some situations in our Term Deposit - Terms and Conditions where early withdrawals are automatically allowed. If your circumstances fall outside those, we’ll take the time to review your request. Once we’ve assessed the details, we’ll let you know what we can do and what the next steps are.
We’ve put together some more detailed information explaining how early withdrawals work, what you can expect, and why a reduced interest rate may apply.
Learn moreYou may also be interested in
Thinking longer term?
Savings accounts and term deposits can help you build a strong financial foundation. If you’re thinking about longer‑term goals, like retirement, your first home, or growing your wealth over time, KiwiSaver might be another way to support those plans.
Learn moreHow to choose your 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 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 moreWhat affects term deposit rates in New Zealand?
When you’re comparing New Zealand term deposit rates, it’s completely natural to have a few questions. Here’s a simple look at the things people often wonder about, how we approach term deposit rates.
Learn more
Important information
- Minimum deposit $2,000. Maximum deposit $2,000,000. Deposits above $2,000,000 speak to one of our team.
- Interest is calculated daily, unless stated otherwise. Interest may be paid into one of our everyday accounts or into an account of a saved payee.
- Terms from one month to four years. If you choose a term that isn’t listed, it will usually earn the same interest rate as the next shortest listed term (for example, eight months earns the six‑month rate). To open a term deposit for a term not shown above, please contact us on 0800 554 554 or connect with one of our branches.
- Rates and availability: Rates can change and apply when your term deposit is opened. Early withdrawals (if permitted) may be at our discretion and could result in a reduced return. See the Term Deposit Terms and Conditions .
- For full details, read the Term Deposit Terms and Conditions and the current Disclosure Statement (also available in our branches).