Kiwibank announced changes to its six-month and one-year term deposit rates, with the former increasing by 20-basis points and the latter decreasing by 25-basis points. This comes as Infometrics chief forecaster Gareth Kiernan notes that term deposit rates have been falling at a slower rate than home loan fixed rates since June, suggesting that there may be more downward pressure on them in the future. With banks needing to balance their lending and funding terms, it is likely that term deposit rates will remain competitive in the current low interest rate environment.
Kiwibank Adjusts Term Deposit Rates Amid Falling Lending Rates
Kiwibank has announced changes to its six-month and one-year term deposit rates. The six-month rate has increased by 20 basis points, while the one-year rate has decreased by 25 basis points.
This move comes as Infometrics chief forecaster Gareth Kiernan notes that term deposit rates have been falling at a slower rate than home loan fixed rates since June. This suggests that there may be more downward pressure on term deposit rates in the future.
With banks needing to balance their lending and funding terms, it is likely that term deposit rates will remain competitive in the current low interest rate environment.
Background
Term deposits are a type of savings account that allows you to deposit money for a fixed period of time. The interest rate you earn on your term deposit is fixed for the term of the deposit.
Term deposits are a popular way to save for a specific goal, such as a down payment on a house or a new car. They can also be a good way to generate income in a low interest rate environment.
FAQs
Kiwibank has adjusted its term deposit rates in response to the changing interest rate environment. Term deposit rates have been falling at a slower rate than home loan fixed rates, which is putting pressure on banks to reduce their term deposit rates.
The new six-month term deposit rate is 2.20%, and the new one-year term deposit rate is 2.75%.
You can open a term deposit online, over the phone, or at a Kiwibank branch. You will need to provide your personal information, deposit amount, and the term of the deposit.
The main risk of investing in a term deposit is that you will not be able to access your money until the term of the deposit expires. If you need to access your money before the term expires, you may have to pay a penalty.
Term deposits are a good investment if you are looking for a safe and secure way to grow your money. They offer a fixed interest rate, which is guaranteed for the term of the deposit. However, it is important to note that term deposit rates can change, and your investment may not always earn as much as you expected.
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