Secure your savings with guaranteed returns. Compare term deposit rates, terms, and features from New Zealand's leading banks and financial institutions. Make an informed decision for your retirement savings.
Term deposits offer fixed interest rates for the duration of your term. Your returns are guaranteed and protected by government deposit insurance up to $100,000 per bank.
Compare the latest term deposit rates from New Zealand's major banks. Rates shown are for standard 12-month terms with minimum deposits of $5,000-$10,000.
Different term lengths offer varying interest rates. Here's what you can expect across common term periods:
| Bank | 3 Months | 6 Months | 12 Months | 2 Years | 3 Years |
|---|---|---|---|---|---|
| Kiwibank | 4.60% | 4.75% | 4.90% | 5.00% | 5.10% |
| ASB Bank | 4.55% | 4.70% | 4.85% | 4.95% | 5.05% |
| ANZ | 4.50% | 4.65% | 4.80% | 4.90% | 5.00% |
| Westpac | 4.45% | 4.60% | 4.75% | 4.85% | 4.95% |
Term deposits offer several advantages that make them particularly suitable for retirees and seniors managing their retirement savings:
Your principal is 100% safe and guaranteed. Unlike shares or managed funds, term deposits cannot lose value. Perfect for preserving retirement savings.
Know exactly how much interest you'll earn. Choose monthly interest payments for regular income to supplement NZ Super or receive a lump sum at maturity.
Deposits up to $100,000 per person per bank are protected by government guarantee. Spread larger amounts across multiple banks for additional security.
No need to monitor markets or make investment decisions. Set and forget for the term. Ideal for seniors who want peace of mind without complexity.
Most term deposits have no setup fees, account keeping fees, or management charges. What you earn in interest is what you keep (minus tax).
Choose terms from 1 month to 5 years to match your financial goals. Ladder multiple term deposits for liquidity while maximizing returns.
Term deposit laddering is a proven strategy that gives you both higher interest rates and regular access to your money. Here's how it works:
For deposits over $100,000, spread your ladder across multiple banks. This gives you:
A term deposit is a fixed-term savings account where you deposit a lump sum for a specific period (the "term") at a guaranteed interest rate. Your funds are locked in for the duration of the term, but you earn significantly more interest than regular savings accounts.
How it works:
Example: Deposit $50,000 for 12 months at 4.90% p.a. You'll earn $2,450 in interest (before tax), giving you $52,450 at maturity.
New Zealand banks offer term deposits ranging from 1 month to 5 years. The most common terms are:
💡 Recommendation for seniors: 12-month terms are most popular as they provide good rates with annual access to funds. Consider laddering across multiple terms for the best of both worlds.
Yes, but with significant penalties. Most banks allow early withdrawal from term deposits, but you'll face financial consequences:
Example: If you invested $50,000 for 12 months at 4.90% but need to withdraw after 6 months:
Yes, term deposits are highly secure. In New Zealand, term deposits with registered banks are covered by government protection:
How to maximize protection for larger amounts:
Example: $300,000 to invest
This spreads your risk across three institutions while keeping all $300,000 within government protection limits.
Note: The $100,000 limit applies per person per institution. Joint accounts may have different coverage. Check Reserve Bank of New Zealand website for current details.
Live rates for $10,000+ deposits. Rates updated regularly and subject to change:
| Bank | 3 months | 6 months | 12 months | 24 months | Contact |
|---|---|---|---|---|---|
| ANZ | 4.50% | 4.80% | 5.00% | 4.85% | 0800 269 296 |
| ASB | 4.55% | 4.85% | 5.05% | 4.90% | 0800 803 804 |
| BNZ | 4.45% | 4.75% | 4.95% | 4.80% | 0800 275 269 |
| Kiwibank | 4.60% | 4.90% | 5.15% | 5.00% | 0800 113 355 |
| Westpac | 4.50% | 4.80% | 5.00% | 4.85% | 0800 400 600 |
| Heartland Bank | 4.70% | 5.00% | 5.20% | 5.25% | 0800 85 20 20 |
| SBS Bank | 4.65% | 4.95% | 5.10% | 5.05% | 0800 727 2265 |
Example: $50,000 for 12 months at 5.15%
Instead of putting all your money in one term, spread it across multiple terms for better liquidity and interest optimization:
Total interest over 12 months: ~$4,910 (vs $5,150 all in 12-month, but with much more flexibility)
Balanced approach: Don't put everything in term deposits. Consider:
All term deposit interest is taxed at your Resident Withholding Tax (RWT) rate or PIR rate. Here's what seniors actually receive:
| Income Level | Tax Rate | Gross Interest | Tax Deducted | You Receive |
|---|---|---|---|---|
| Up to $14,000/year | 10.5% | $5,000 | $525 | $4,475 |
| $14,001-$48,000 | 17.5% | $5,000 | $875 | $4,125 |
| $48,001-$70,000 | 30% | $5,000 | $1,500 | $3,500 |
| $70,001-$180,000 | 33% | $5,000 | $1,650 | $3,350 |
| Over $180,000 | 39% | $5,000 | $1,950 | $3,050 |
💡 Tax Tip for Seniors on NZ Super:
If you're on NZ Super (~$27k/year single, ~$42k/year couple) with modest other income, you'll likely be in the 17.5% tax bracket. Ensure your bank has the correct RWT rate set - you can request 10.5% if total income is under $14k, or 17.5% if under $48k total.
Compare current term deposit rates and find the best return for your retirement savings. Start earning guaranteed interest today.