Summarised by Centrist
Savers are being squeezed as New Zealand’s major banks slash term deposit (TD) rates in response to last week’s 50-basis-point cut to the Official Cash Rate.
ANZ has led the charge downward, now offering 3.95% on 90-day deposits—the first major bank to drop below 4%.
Banks are showing little interest in competing for savers’ cash. Just days ago, rates over 5% were still available, but now only one main bank—ICBC—offers a TD rate at 5%.
Savers are left with few options, as shifting to longer terms may lock them into falling rates, while shorter-term deposits risk being renewed at even worse returns.
For those willing to look beyond the big banks, smaller institutions and non-bank lenders are still offering rates in the 6% range, but these come with higher risk.
