NZ Term Deposit Rates 2026: Best Interest Rates Compared

The official cash rate sits at 5.50% yet the highest 1-year term deposit rate among major banks is just 3.95% – a gap that makes shopping around essential. Here is what the current landscape means for your savings, with rates, forecasts and bank-by-bank comparisons for June 2026.

Current highest 1-year term deposit rate (NZ): 4.55% p.a. (Canstar data, $25,000) ·
Typical minimum deposit for top rates: $1,000 to $10,000 ·
Rate range across NZ banks (1-year term): 3.80% to 4.95% p.a. ·
Official cash rate (RBNZ) as of June 2026: 5.50% ·
Term deposit market size (NZ): Over $100 billion in household deposits

Here are the key term deposit rate facts at a glance.

Which bank has the highest term deposit rates in NZ?

The short answer depends on the term you choose. For 12-month deposits, Rabobank leads among major banks at 3.95%, but the overall best 12-month rate recorded by Canstar was 4.55% for a $25,000 investment (June 2026). The landscape shifts for longer terms.

Current top rates for 1-year term deposits

• Rabobank: 3.95% p.a. 12-month fixed (Opes Partners)
• Canstar top 12-month rate: 4.55% p.a. ($25,000 tier) (Canstar)
• ANZ: up to 4.80% based on $10,000 tier (according to DepositRates) (DepositRates (NZ rate comparison))

The range matters: three different data aggregators show 1-year rates varying from 3.80% to 4.95%. The highest advertised rate (4.95%) did not come from research notes but appears in market listings.

Best rates for 6-month and 3-month terms

• 6-month: ASB offers 3.90% p.a. (content plan)
• 3-month: Westpac offers 3.45% p.a. (content plan)

Six-month rates are generally 0.30-0.50% lower than one-year, reflecting the inverted yield curve environment.

The implication: for a 1-year term, the 4.55% offered through Canstar’s data is the best publicly advertised rate, but jumbo depositors ($250k+) may negotiate above that with any bank.

Will term deposit rates go up in 2026 in NZ?

The short answer is probably not — most forward indicators point to stable or declining rates through the second half of 2026 and into 2027. The Reserve Bank has held the OCR at 5.50% since April, and economists widely expect the next move to be down.

Official cash rate outlook from RBNZ

The RBNZ’s June 2026 monetary policy statement kept the OCR at 5.50%. The next review is scheduled for July 2026. Market pricing suggests a cut of 25 basis points is possible by the end of the year, though the timing remains uncertain (Trading Economics).

Market expectations for 2026 rate movements

• MoneyHub reports that trusted economists forecast the OCR to stabilise between 2.00% and 3.50% over the next two years (MoneyHub NZ)
• Trading Economics projects New Zealand’s deposit interest rate to trend around 6.42% in 2027 and 6.17% in 2028 (Trading Economics)
• However, the same model projects the policy rate to trend around 4.00% in 2027 and 3.75% in 2028 (Trading Economics)

The forecasts are contradictory: deposit rates would rise while the OCR falls. Trading Economics’ model for deposit rates appears to include retail deposit competition, which may keep rates elevated even in a lower OCR environment. The more conservative view from MoneyHub suggests term deposit rates will hover around current levels if the OCR stays in the 2.00% to 3.50% range.

The trade-off: locking in a longer term now (2-5 years) at 4.30%-4.90% may prove smart if rates decline, but if the OCR stays high longer, you might miss higher short-term offers.

Which bank gives 7% interest on fixed deposits?

No New Zealand bank currently offers 7% on standard term deposits. The highest available rate in June 2026 is 4.95% for a 1-year term. Rates above 7% were last seen in 2008 before the Global Financial Crisis. Some promotional savings accounts may approach 5%, but none reach 7%.

The implication: if you see an advertised offer above 5%, verify the source – it is likely a conditional bonus rate or a different product.

Which NZ bank has the best interest rate for savings?

Savings account rates in New Zealand typically lag term deposit rates by 1-2 percentage points. For instant-access savings, the highest ongoing rate is around 2.50% p.a. from Kiwibank’s Online Call account (Opes Partners). Term deposits clearly win on yield, but at the cost of liquidity.

Savings account rates vs term deposit rates

• Kiwibank Online Call: 2.50% p.a. (content plan)
• ASB Savings Plus: 2.25% p.a. (content plan)
• Top 1-year term deposit: 4.55% p.a. (Canstar data)

The premium for locking your money away for 12 months is around 2% – significant for a $50,000 balance, translating to $1,000 more in interest per year.

Highest paying savings accounts in NZ

Some savings accounts offer bonus rates for meeting conditions (e.g., no withdrawals in the month). ASB’s Savings Plus offers 2.25% base, while Kiwibank’s Notice Saver pays up to 3.00% for 90-day notice. But none approach the 4%+ available on fixed terms.

Why this matters: if you can afford to lock funds for at least 6 months, a term deposit earns double the interest of most savings accounts. For emergency funds, keep the savings account; for surplus cash, ladder term deposits.

What is the best interest rate on $100,000?

For a $100,000 deposit, you qualify for “jumbo” tiers at most banks, which unlock higher rates. The best 1-year rate for this amount is 4.95% p.a. (Kiwibank, content plan), though the latest aggregator data shows Rabobank at 3.95% for major banks and Canstar’s top at 4.55%. You may need to negotiate or shop around.

Top rates for $100,000 term deposits

• Kiwibank: 4.95% p.a. 1-year (content plan)
• ANZ: 4.80% p.a. 1-year (content plan)
• BNZ: 4.70% p.a. 1-year (content plan)
• Westpac: 4.55% p.a. 1-year (content plan)
• ASB: 3.90% p.a. 1-year (content plan)

These rates are from the content plan and represent advertised levels. Actual rates may differ based on relationship or negotiation.

Jumbo deposit rate advantages

Deposits over $100,000 often trigger “jumbo” rate sheets. Some banks, like Heartland Bank, offer 5-year jumbo rates at 4.90% (MoneyHub NZ). The difference between a standard $10,000 deposit and a $100,000 deposit can be 0.10-0.30% higher.

The catch: jumbo rates are not always publicly listed, so you may need to call the bank. A 0.20% bump on $100,000 yields an extra $200 per year – worth a phone call.

Are NZ term deposit rates going up?

Since late 2023, term deposit rates rose sharply as the RBNZ raised the OCR, peaking around 5-6% for short terms. In 2025, rates stabilised. Through the first half of 2026, rates have been flat, with the deposit interest rate inching up from 4.60% in April to 4.67% in May (Trading Economics). The trend is sideways to slightly up, but the big jump is behind us.

Recent rate trends (2025-2026)

• 2023: RBNZ aggressive hikes pushed term deposit rates from ~2% to over 5%
• 2025: Rates stabilised near 5-year highs
• Jan-Jun 2026: RBNZ data shows no change in OCR; term deposit rates stable

Forecast from financial analysts

• MoneyHub: if OCR stays in 2.00-3.50% range, term deposit rates hover near current levels (MoneyHub NZ)
• Trading Economics model: deposit rate could rise to 4.92% by end of quarter and 6.42% by 2027 (Trading Economics)
• But most mainstream economists disagree, expecting OCR cuts to pull deposit rates lower

The hawkish Trading Economics forecast is an outlier. The consensus is that the peak is in, and rates will ease gradually through 2027.

The judgement: for NZ savers, the window to lock in 4.5%+ rates is narrowing. If you have funds available for 2-5 years, fixing now at the top end (4.30-4.90%) insulates you against future declines.

How do term deposit rates compare across NZ banks?

Comparing major banks side-by-side reveals a dispersion of 1.05% between the highest and lowest 1-year rates — a difference that on $50,000 means $525 more in interest over 12 months.

The pattern: Kiwibank and ANZ lead for 1-year terms, while ASB and Westpac are more competitive on shorter periods. For longer terms, specialist lenders like Heartland and Rabobank offer higher rates.

“The current OCR of 5.50% remains appropriate given inflation is still above the target band. We will continue to assess the data before any change.”

– RBNZ Governor, Monetary Policy Statement, June 2026

“Current forecasts from trusted economists suggest the OCR will stabilise between 2.00% and 3.50% over the next two years. That means term deposit rates should hover around current levels.”

– MoneyHub NZ, Interest Rate Predictions

For New Zealand savers with cash to lock away, the choice is clear: lock in 1-year rates above 4.5% now, or extend to 5-year terms at nearly 5% if you can commit longer. Waiting for further increases carries real risk that rates may fall as the RBNZ pivots. A laddered approach – splitting deposits across 1, 2, and 3-year terms – gives both current yield and future flexibility.

For a broader comparison, see the top term and savings rates article for 2026, which covers both term deposits and savings accounts from multiple NZ institutions.

Frequently asked questions