Deposit takers play the long game
ANZ and National Banks have taken the lead in the deposit rate war, boosting their returns on terms for 12 months or more, amid grumbling from group chief executive Mike Smith that the fight for retail customers was "ridiculous" and was pricing banks out of business.
Monday, November 2nd 2009, 5:21AM
Both banks increased their 12-month rates 50 basis points to 5% and introduced an 18-month special of 5.25%, along with increases of 50 points to 5.5% and 6% in the two- and three-year spaces and 25 point hikes to 6.25% and 6.75% in the four- and five-year terms.
National Bank up its one- and two-month rates by 25 basis points.
Rabo tried to keep pace in the long-term space, increasing 12-month, two-year, four-year and five-year terms by 10 points, while increasing the three-year term by 15 points.
TSB focused on 18-month terms, increasing its yield by 25 points for deposits of $5,000 and 35 points for $10,000 sums.
Kiwibank looked to tap small short-term deposits, upping its five- and six-month rates for $5,000 by 85 points and 25 points respectively. The state-owned bank cut its six-month offer on $10,000 deposits by 60 points.
ASB increased its three-month deposits 25 points and its 12-month terms by 45 points, while the Nelson Building Society boosted its six- and 12-month rates 20 and 55 points and its two-year rate by 5 points.
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