Quick Answer
Best NZ term deposit rate (October 2026): up to 4.55% at finance companies (General Finance) and 4.00-4.05% at the main banks for 12 months. Among the Big 5, BNZ, Kiwibank and Heartland lead at 4.05% (12-month), with ANZ, ASB and Westpac at 4.00%. Rabobank pays 4.15% (12-month) with just NZ$1,000 minimum. Rates have repriced upward after the RBNZ hiked the Official Cash Rate to 2.75% on September 2, 2026. All bank and licensed non-bank deposits are covered by the Depositor Compensation Scheme up to NZ$100,000 per institution. Use our FD calculator to see exact returns for your amount.
What's Inside
- 1. All NZ Term Deposit Rates (October 2026)
- 2. NZ$50,000 Deposit — Bank-by-Bank Returns
- 3. Big 5 Banks: ANZ vs Westpac vs ASB vs BNZ vs Kiwibank
- → Westpac NZ Rates · Kiwibank Rates · ANZ NZ Rates · BNZ Rates
- PIE Term Deposits — Tax Advantage
- 4. Term Deposit vs Savings Accounts vs Kiwi Bonds
- 5. Smart Strategy for NZ Deposits in 2026
- 6. Early Withdrawal, Monthly Interest & Retirees
- 7. Frequently Asked Questions
- 8. Calculate Your Exact Returns
1. All NZ Term Deposit Rates (October 2026)
Every major New Zealand bank's term deposit rates as of October 2026. Sorted by 12-month rate (the most popular tenure):
| Bank | Rating | 6 Months | 9 Months | 12 Months | Min Deposit |
|---|---|---|---|---|---|
| General Finance | BB | 3.80% | — | 4.55% | NZ$5,000 |
| Rabobank | A | 3.70% | 3.90% | 4.15% | NZ$1,000 |
| Co-operative Bank | BBB+ | 3.60% | 3.90% | 4.10% | NZ$2,000 |
| BNZ | AA- | 3.60% | 3.90% | 4.05% | NZ$2,000 |
| Kiwibank | A1 | 3.55% | 3.90% | 4.05% | NZ$1,000 |
| Heartland Bank | BBB | 3.55% | 3.85% | 4.05% | NZ$1,000 |
| ANZ | AA- | 3.55% | 3.85% | 4.00% | NZ$10,000 |
| ASB | AA- | 3.55% | 3.85% | 4.00% | NZ$5,000 |
| Westpac | AA- | 3.45% | 3.80% | 4.00% | NZ$5,000 |
| SBS Bank | BBB+ | 3.00% | 3.45% | 3.60% | NZ$1,000 |
| TSB Bank | BBB+ | 3.45% | 3.75% | 3.90% | NZ$1,000 |
| Bank of China | A | 3.55% | 3.85% | 4.00% | NZ$100,000 |
2. NZ$50,000 Deposit — Bank-by-Bank Returns (9 Months)
Here's exactly how much you earn on a NZ$50,000 term deposit for 9 months at each bank:
| Bank | Rate (12mo) | Interest Earned | Maturity Value | vs TSB (3.90%) |
|---|---|---|---|---|
| General Finance | 4.55% | NZ$2,275 | NZ$52,275 | +NZ$325 |
| Rabobank | 4.15% | NZ$2,075 | NZ$52,075 | +NZ$125 |
| Co-operative Bank | 4.10% | NZ$2,050 | NZ$52,050 | +NZ$100 |
| BNZ / Kiwibank / Heartland | 4.05% | NZ$2,025 | NZ$52,025 | +NZ$75 |
| ANZ / ASB / Westpac | 4.00% | NZ$2,000 | NZ$52,000 | +NZ$50 |
| TSB | 3.90% | NZ$1,950 | NZ$51,950 | — |
3. Big 5 Banks: Head-to-Head
Most Kiwis deposit with the Big 5 for convenience. Here's how they compare across all standard tenures:
| Bank | 6 Months | 9 Months | 12 Months | Min Deposit | Verdict |
|---|---|---|---|---|---|
| BNZ | 3.60% | 3.90% | 4.05% | NZ$2,000 | Top 12-month + low minimum |
| Kiwibank | 3.55% | 3.90% | 4.05% | NZ$1,000 | Lowest min, NZ-owned |
| ANZ | 3.55% | 3.85% | 4.00% | NZ$10,000 | AA- rated, PIE options |
| ASB | 3.55% | 3.85% | 4.00% | NZ$5,000 | Strong all-rounder |
| Westpac | 3.45% | 3.80% | 4.00% | NZ$5,000 | PIE term deposits |
Westpac NZ Term Deposit Rates
Westpac pays 4.00% for 12 months (3.80% for 9 months), in line with the other big banks. Minimum deposit is NZ$5,000. Westpac is rated AA- (Standard & Poor's), meaning very strong credit quality, offers PIE term deposits for higher-rate taxpayers, and all deposits are covered by the NZ Depositor Compensation Scheme (DCS) up to NZ$100,000.
Westpac also offers a PIE term deposit option — see the PIE section below for why this matters at tax time.
Kiwibank Term Deposit Rates
Kiwibank pays 4.05% for 12 months (3.90% for 9 months) — tied for the top Big-5 rate, and with the lowest minimum deposit (NZ$1,000) of any major bank. Kiwibank is 100% NZ-owned through NZ Post, which matters to Kiwis who prefer keeping money local.
Kiwibank's real advantage is its PIE term deposits. For savers on a marginal tax rate above 28%, the PIE structure means you pay a maximum 28% tax on interest instead of your full marginal rate (up to 39%). On NZ$50,000 at 4.05%, that's a NZ$223 tax saving for a 39% taxpayer compared to a standard term deposit.
ANZ NZ Term Deposit Rates
ANZ pays 4.00% for 12 months and 3.85% for 9 months, in line with the other big banks. Minimum deposit is NZ$10,000 — higher than Kiwibank and BNZ, but ANZ's PIE term deposit options make it attractive for higher-rate taxpayers.
ANZ is rated AA- and is one of the "four pillars" of Australasian banking. All deposits up to NZ$100,000 are DCS-protected.
BNZ Term Deposit Rates
BNZ pays 4.05% for 12 months (3.90% for 9 months) with a NZ$2,000 minimum — one of the top Big-5 rates at a low minimum. BNZ also offers senior rates for customers aged 60+, which can add 0.05-0.10% above standard rates on selected tenures. Check the BNZ website or visit a branch to confirm current senior pricing.
PIE Term Deposits — Tax Advantage for Higher Earners
A PIE (Portfolio Investment Entity) term deposit caps the tax rate on your interest at 28%, regardless of your marginal tax rate. This matters because NZ's top personal tax rate is 39% (on income over $180,000).
💰 PIE vs Standard Term Deposit — Tax Comparison
On NZ$50,000 at 4.05% for 12 months:
- Standard TD (39% tax rate): NZ$2,025 gross → NZ$1,235 after tax
- PIE TD (capped at 28%): NZ$2,025 gross → NZ$1,458 after tax
- Extra in your pocket: NZ$223/year
Kiwibank, ANZ, ASB, and BNZ all offer PIE term deposit options. If your taxable income is above NZ$48,001 (33% bracket), a PIE term deposit gives you a guaranteed tax saving.
4. Term Deposit vs Savings Accounts vs Kiwi Bonds
| Option | Rate | Lock-in | Minimum | Insurance | Best For |
|---|---|---|---|---|---|
| Term Deposit (General Finance) | 4.55% | 12 months | NZ$5,000 | DCS (NZ$100K) | Highest guaranteed rate |
| Term Deposit (BNZ / Kiwibank) | 4.05% | 12 months | NZ$1,000-2,000 | DCS (NZ$100K) | Big bank security |
| Kiwi Bonds | 2.25% | 6 months | NZ$1,000 | NZ Government backed | Government guarantee (no DCS limit) |
| Savings account (conditional) | 1.5-4.5% | None | NZ$0 | DCS (NZ$100K) | Emergency fund, instant access |
| Notice Saver (32 days) | 3.0-3.4% | 32 days notice | NZ$2,000 | DCS (NZ$100K) | Near-instant but higher rate |
→ You can lock NZ$5K+ for 6-12 months (4.00-4.55% guaranteed)
→ You want a fixed, predictable return (savings rates can change anytime)
→ You're comparing against Kiwi Bonds (2.25%) — term deposits pay 1.2-1.5% more
When savings accounts win:
→ You need instant access to funds
→ You can meet bonus conditions (salary credit, card spending, etc.)
→ Your emergency fund — never lock emergency money in term deposits
5. Smart Strategy for NZ Deposits in 2026
Where Are NZ Rates Heading?
The RBNZ hiked the Official Cash Rate (OCR) by 25 basis points to 2.75% on September 2, 2026, responding to an inflation pickup (around 4.1%) driven by global fuel prices. This reverses the easing cycle of 2025, and term deposit rates have already repriced upward — 12-month rates now sit at 4.00-4.05% at the main banks and up to 4.55% at finance companies. With the RBNZ signalling a possible further hike before year-end, rates may edge higher still.
What to Do Now
- Don't rush a long lock-in — with the OCR just hiked and rates repricing upward, a 6-month term keeps you flexible to catch higher rates if the RBNZ signals more hikes
- Use a TD ladder — split NZ$100K into 4 deposits (3, 6, 9, 12 months). One matures each quarter. You capture rising rates as they come through AND keep steady access.
- Consider Rabobank or Kiwibank for flexibility — NZ$1,000 minimum means you can start small and add more deposits over time
- DCS coverage is NZ$100K per institution — if you have more than NZ$100K, split across ANZ + Westpac + Kiwibank for full coverage on NZ$300K
- PIE term deposits for tax efficiency — if your marginal tax rate is 33% or 39%, a PIE fund taxed at 28% gives you a higher after-tax return than a standard term deposit at the same rate
Tax on Term Deposit Interest in NZ
At 10.5% tax rate: NZ$1,369 gross → NZ$1,225 after tax
At 17.5% tax rate: NZ$1,369 gross → NZ$1,129 after tax
At 30% tax rate: NZ$1,369 gross → NZ$958 after tax
At 33% tax rate: NZ$1,369 gross → NZ$917 after tax
At 39% tax rate: NZ$1,369 gross → NZ$835 after tax
PIE alternative at 28% cap: NZ$1,369 gross → NZ$986 after tax (saves NZ$69-151 for high earners)
6. Early Withdrawal, Monthly Interest & Options for Retirees
Breaking a term deposit early
NZ term deposits generally require 31 days' notice to withdraw early (a rule reinforced by RBNZ), and the bank applies a reduced interest rate for early break — you keep your principal but lose a chunk of the interest. Some banks allow partial early withdrawal; most don't. Only lock in money you're confident you won't need before maturity.
Monthly interest payout
Most NZ banks let you choose interest paid monthly, quarterly, or at maturity. Monthly payout is popular with retirees who want regular income — the rate is fractionally lower than compounding-at-maturity, but the money lands in your account each month. On NZ$100,000 at 4.05%, monthly payout delivers roughly NZ$338/month before tax.
Best options for superannuitants & retirees
For retirees, the winning combination is usually a PIE term deposit with monthly interest: the 28% PIE tax cap protects your NZ Super from pushing your interest into a higher bracket, while the monthly payout provides steady income. Rabobank and Heartland often lead on rate for the smaller balances typical of retirees (NZ$1,000+ minimums).
7. Frequently Asked Questions
What is the best term deposit rate in New Zealand in 2026?
As of October 2026, finance company General Finance offers the highest rate at 4.55% for 12 months (NZ$5,000 minimum). Rabobank pays 4.15% (12-month, NZ$1,000 minimum), and the Big-5 banks (BNZ, Kiwibank, ANZ, ASB, Westpac) sit at 4.00-4.05% for 12 months. Rates rose after the RBNZ hiked the OCR to 2.75% on 2 September 2026. All are covered by the Depositor Compensation Scheme up to NZ$100,000.
Are term deposits covered by deposit insurance in NZ?
Yes. New Zealand's Depositor Compensation Scheme (DCS) protects deposits up to NZ$100,000 per depositor per licensed institution. If you hold more than $100K, split across multiple institutions for full coverage.
What is a PIE term deposit and who should use one?
A PIE (Portfolio Investment Entity) term deposit caps tax on interest at 28%, regardless of your marginal rate. Since NZ's top personal rate is 39%, anyone earning over ~NZ$70,000 saves 5–11% tax. On NZ$50,000 at 4.05%, a 39% taxpayer saves around NZ$223/year with a PIE.
Can I get monthly interest on an NZ term deposit?
Yes. Most banks let you choose monthly, quarterly, or at-maturity interest. Monthly payout suits retirees needing regular income; the rate is marginally lower than at-maturity compounding. NZ$100,000 at 4.05% pays about NZ$338/month before tax.
What happens if I break a term deposit early in NZ?
You typically must give 31 days' notice and the bank applies a reduced interest rate for the early-break period. You keep your principal but lose some interest. Only lock in money you won't need before maturity.
What is the best term deposit for retirees / superannuitants?
Usually a PIE term deposit with monthly interest: the 28% PIE cap protects your interest from bracket creep on top of NZ Super, and monthly payout gives steady income. Rabobank and Heartland often lead on rate for smaller balances (NZ$1,000+ minimums).
Term deposit vs savings account in NZ — which is better?
A term deposit locks money for a fixed period at a guaranteed rate (4.00–4.55%); a savings account gives instant access but a variable rate (1.5–4.5% with conditions). Choose a term deposit for guaranteed returns on money you won't need soon.
8. Calculate Your Exact NZ Term Deposit Returns
Plug in your deposit amount, rate, and tenure to see exact maturity value. Works with NZD and all other currencies.
🇳🇿 Calculate Your NZ Term Deposit Returns
Enter your amount and compare returns at different rates and tenures.
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Last Updated: September 30, 2026 | Author: Rizwan Ahmad
Disclaimer: Rates shown are based on publicly available data from interest.co.nz and bank websites as of October 2026. Rates change frequently. Always verify current rates directly with the institution. This is not financial advice. Depositor Compensation Scheme covers up to NZ$100,000 per depositor per licensed institution.