A Kiwibank term deposit can assure that your deposit is growing at a fixed term and interest rate starting from 0.50% per annum based on your agreed term deposit. You can choose to deposit at a term of 30 days to 5 years, which at maturity allows you to earn 0.90% per annum when you deposit. Kiwibank Term Deposit Interest Rates. Account Details APY Updated; Kiwibank 1 Year Term Deposit Rate: 2.75%. Kiwibank 5 Year Term Deposit Rate: 2.75%. With rates likes this we can't hold them for long so register for Book-A-Rate alerts to be the first to hear about new rates. Book-A-Rate is the place to reserve your next great Kiwibank Term Deposit deal.
Press Release: Canstar
Term deposits: Kiwibank offers outstandingvalue
CANSTAR releases its2015 Term Deposit Award report today, researching and ratingnine banks to determine which offer outstanding value forconsumers through their suite of term deposits.
Ratechasing seems to have become a national sport among thoseintent on channelling the most interest possible into theirterm deposits. While it is obvious that pursuing the highestinterest rates on the market will bump up your bottom line,just how much better off will you really be in the longrun?
To work out exactly how much ahead a rate chaserwould be, compared to a customer who simply rolled a termdeposit over at the same bank, CANSTAR pitted the twostrategies, using $10,000, to see what wouldhappen.
CANSTAR looked at two hypotheticalscenarios:
• One customer chasing the best rate andmoving $10,000 every 90 days for the past three years –but with a two day gap in terms each time,and
•
• One customer staying put at the oneinstitution.
Firstly – ratechasing…
The rate chaser did come out aheadover the past three year period – but only just. Activelychasing the highest term deposit rate every 90 days forthree years, with a two-day down time between each term,netted our hypothetical saver a total of $1,172 interest,giving a total balance at the end of three years of$11,172.
Being loyal…
In comparison,the loyal customer had cash in hand at the end of the 3-yearterm of $11,139. In other words, $11 per year less ininterest on a $10,000 deposit. Does it make it worth theeffort of switching?
'The extra interest that you couldpotentially earn by rate chasing will depend on the amountyou're investing, of course,' said CANSTAR GeneralManager–New Zealand, Derek Bonnar. 'An extrathirty-three dollars over three years, for me, wouldn't bea compelling reason to switch. It might be for othersthough.'
CANSTAR's research into term deposits isnot just a case of comparing rates. There's no doubt ratesare the key driver behind the attraction of term deposits toinvestors or those saving for a goal. However there areother factors which CANSTAR takes into consideration withits research that heighten the consumer's experience witha particular institution's term deposit process.
'Aswell as interest rate it's important to consider factorssuch as whether or not there's a need to open a separateaccount with that institution, as well as the way the termdeposit maturity is handled and notice conveyed to thecustomer,' said Mr Bonnar. 'Then there are the interestoptions, plus the ease of rollover facilities or processesfor monies moving into or out of the bank.'
CANSTAR hasassessed the interest rates and account features of termdeposits across nine financial institutions to determinewhich institution offers outstanding value in the termdeposit market. This year, once again, we couldn't go pastKiwibank.
'As far as interest rates go, Kiwibank is Kingwith the top rate of 4.42% for both $10,000 and $50,000 overthe five to seven month brackets that we assessed,' saidMr Bonnar. 'In fact, the bank pays out in excess of twelvebasis points above the industry average in thesetimeframes.'
Alongside the pricing score, CANSTAR saidthat Kiwibank earned the highest feature score.
'Thereare a lot of things to like about their term deposits. Forinstance, up to twenty percent of the principle can bewithdrawn at any time during the term with no penalty,' MrBonnar noted.
Other features of appeal, according toCANSTAR, are a full online application process for new andexisting customers, with a 7-day variation period. Switchingover your money at maturity time to another bank is noproblem and can be done free online.
'Kiwibank has nowwon CANSTAR's Term Deposit Award three out of the fourtimes it has been presented. We congratulate them on thisachievement,' Mr Bonnar said.
Consumers can download the full range of termdeposits researched by CANSTAR at www.canstar.co.nz
ends
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We spoke to Kiwibank's Product Manager Glen Saunders to see how you can get the most from your savings and what to look for in a term deposit
Why should savers consider term deposits as part of their savings programme?
Term Deposits generally offer a higher fixed interest rate and, when combined with interim interest options, can provide a source of ongoing income.
Term Deposit Interest Rates Nz
Are there any risks to be aware of when investing in term deposits and how can depositors mitigate/minimise these risks?
As with any investment there are things to consider. The main thing with a term deposit is that your money is locked away for a set period. You can break your term deposit but you may lose some or all of the interest you have earned. Different banks have different terms around how breaks work. Interest rates can also change over time.
How could term deposits help people save for their first home?
Highest Fixed Deposit Interest Rates
In the current market saving for a home can take some time. Term deposits can offer a good option to earn higher interest and help with locking money away, helping you on the journey to your goal.
What are your recommendations around choosing a term deposit length?
Westpac Term Deposit Interest Rates
Different terms suit different needs. It really depends on what your investment timeframe is and what you are investing for. If you are retired and the term deposit is a source of ongoing income a longer term at a higher rate might work for you. If you are younger and saving for a winter holiday a shorter term might be more suitable.
What are some tips to get the most out of your term deposit?
Interest rates are obviously an important factor but so are services that help you manage your term deposit too. Digital services are becoming more widespread, allowing you the flexibility to manage your term deposit, when and where you want. Not all term deposits are created equal, either, with various features available to help you manage your investment over time. Some banks will allow a free partial break of your term deposit for longer terms.
Canstar's verdict: Why Kiwibank is Bank of the Year- Term Deposits
Kiwibank's competitive rates and outstanding features has seen Kiwibank maintain its Bank of the Year – Term Deposits title.
'Kiwibank's consistency can be put down to the fact they are market leaders for term deposit features and offer competitive rates across all terms considered within Canstar's methodology,' says Canstar NZ general manager Jose George.
As at 1st February, Kiwibank had market leading rates with their 6-month term deposit offering a rate of 3.35% – on a $50,000 deposit.
On the feature side, Kiwibank's offers a full online application for new and existing customers, no requirement to have a linked account and a range of maturity reminder options, through mail, phone and email.
On top of all these added features, Kiwibank's prepayment interest penalty – in the case of an early withdrawal – is the lowest in the market at only 2%, says Mr George. Spin and coin free coin master.
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Kiwibank Term Deposit Rates 2020
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