Fixed Term Deposit Rates NZ 2026: Best Rates & Banks Compared
If the only rate you’ve seen for a term deposit comes from your main bank’s app, you’re leaving money on the table. In October 2026, the best 12-month fixed deposit in New Zealand paid 4.55% at General Finance, against 4.00% at ANZ — a gap worth $550 a year on every $100,000 you lock away (Canstar New Zealand (financial comparison site)). The challengers keep moving the top of the table, and the big four are no longer the obvious answer.
Top 12-month rate: 4.55% at General Finance ·
Top 24-month rate: 4.80% at General Finance, Gold Band and Welcome ·
Top 5-year bank rate: 5.00% at ASB (interest.co.nz (interest-rate data specialists)) ·
Top savings rate: 3.25% (notice-saver and on-call accounts)
Quick snapshot
- General Finance leads 12-month terms at 4.55% on Canstar’s 9 October comparison (DepositRates.co.nz (deposit rate tracker))
- ASB’s five-year rate at 5.00% was the highest five-year bank rate (interest.co.nz) (DepositRates.co.nz (deposit rate tracker))
- Top savings accounts pay 3.25% (DepositRates.co.nz (deposit rate tracker))
- Whether top rates hold through the rest of 2026 as wholesale funding costs move
- Whether ASB’s 5.00% five-year rate carries eligibility limits or minimum balance requirements
- How quickly the big four will respond to challenger-bank pricing
- ASB raised its one-year fixed rate to 4.00% in October 2026; BNZ and Kiwibank held at 4.05% (interest.co.nz)
- Canstar’s 12-month and 24-month rate tables were recorded on 9 October 2026
- Rate moves will track funding costs; recheck Canstar’s table before locking in
- The gap between big-four and challenger pricing is the number to watch
Four facts, one pattern: longer terms are paying more than shorter terms in the October 2026 market.
| Label | Value |
|---|---|
| Current 12-month rate range | 4.00% (ANZ) – 4.55% (General Finance) |
| Top 24-month rate | 4.80% (General Finance, Gold Band Finance, Welcome) |
| Top 5-year bank rate | 5.00% (ASB) |
| Top 4-year rate (aggregator list) | 4.90% (Rabobank, per Term Deposit Rates NZ (rate aggregator)) |
| Top big-bank 12-month rate | 4.05% (BNZ, Kiwibank) |
| Top notice-saver rate | 3.25% (Xceda Finance, 90-day) |
| Top on-call / unconditional rate | 3.25% (Squirrel, Wedge Money) |
| Interest on $100,000 at 4.55% | $4,550 in one year |
| Data recorded | 9–17 October 2026 |
Which NZ bank has the best term deposit rates?
The answer depends on how much flexibility you need, but the 12-month table has a clear shape. Canstar New Zealand’s comparison, recorded on 9 October 2026, orders the market like this:
- General Finance — 4.55%
- Gold Band Finance — 4.50%
- SBS Bank — 4.50%
- Welcome — 4.40%
- Rabobank — 4.15%
- The Co-operative Bank and Xceda Finance — 4.10%
- BNZ, Christian Savings, Heartland Bank and Kiwibank — 4.05%
- ANZ — 4.00%
What rates do ANZ, Kiwibank, and the other big names offer?
- ANZ: 4.00% for 12 months — the floor of the market.
- ASB: 4.00% for 12 months after raising its one-year rate in October 2026.
- BNZ and Kiwibank: 4.05% for 12 months — the best of the big-four bunch.
The big-four cluster is extremely tight: a 0.05 percentage-point spread between the cheapest and dearest major bank. Step outside the big four and the spread widens to 0.55 points — eleven times larger — because smaller lenders are paying up for deposits.
Twelve providers, one pattern — the challengers own the top rows, the big four hold the bottom. Canstar New Zealand’s 9 October snapshot supplies every number.
How do smaller banks like Heartland compare?
| Provider | 12-month rate | 24-month rate |
|---|---|---|
| General Finance | 4.55% | 4.80% |
| Gold Band Finance | 4.50% | 4.80% |
| SBS Bank | 4.50% | 4.35% |
| Welcome | 4.40% | 4.80% |
| Rabobank | 4.15% | 4.45% |
| The Co-operative Bank | 4.10% | — |
| Xceda Finance | 4.10% | — |
| Heartland Bank | 4.05% | 4.35% |
| BNZ | 4.05% | 4.35% |
| Kiwibank | 4.05% | 4.30% |
| ASB | 4.00% * | 4.30% |
| ANZ | 4.00% | 4.30% |
* ASB’s 12-month rate follows its October 2026 increase, as reported by interest.co.nz. “—” means the provider was not listed in Canstar’s 24-month comparison on 9 October 2026.
Heartland sits mid-table at 4.05% for 12 months and 4.35% for two years — not the market leader, but ahead of every big-four bank at both tenors. That consistency is the quieter story: it does not grab the headline, but it narrows the choice for savers who want a recognizable name without surrendering rate.
For an identical product structure, the spread between the best and worst 12-month rate is 0.55 points — worth $550 a year per $100,000. The real question is not which bank you know best; it is which provider you can verify quickly and comfortably.
The catch: the names at the top are smaller, so check minimum deposit, access channels and licensing before committing. The rate is only the first line of the terms.
The implication: the big four are no longer the benchmark for term deposits; challengers set the pace, and the gap justifies the comparison.
What is the best term deposit interest rate currently?
As of 9 October 2026, the best 12-month advertised rate in New Zealand was 4.55% from General Finance, with Gold Band Finance and SBS Bank at 4.50% and Welcome at 4.40%. Push the term out and the numbers climb: three providers — General Finance, Gold Band Finance and Welcome — listed 4.80% for 24 months on the same Canstar snapshot.
- 12-month top: 4.55% (General Finance); 4.50% (Gold Band Finance, SBS Bank).
- 24-month top: 4.80% (General Finance, Gold Band Finance, Welcome).
- Longer terms: Rabobank was listed with the highest 18-month rate at 4.30%, jointly with several others, and with the highest three-year rate at 4.70% and four-year rate at 4.90% in Term Deposit Rates NZ’s 17 October table.
- Five-year: ASB’s 5.00% was the highest five-year bank rate flagged by interest.co.nz.
What is the current average term deposit rate in NZ?
- Big-four average, 12-month: roughly 4.03% — arithmetic from ANZ 4.00%, ASB 4.00%, BNZ 4.05% and Kiwibank 4.05%.
- Challenger cluster, 12-month: 4.05% to 4.55%.
- The average matters less than the spread: 0.55 points separates the top and bottom of the 12-month market.
The average is a thermometer, not a target. What matters is where your money sits in the range — and the October 2026 range is wide enough to make comparison worthwhile.
ASB’s 5.00% five-year rate is the biggest sticker number, but it locks money away for five years. The realistic ceiling for 12-month money is 4.55% at General Finance — the longer lock is how the market pays more.
The implication: the best rate depends on the tenure you can tolerate. Decide the term first, then shop the provider — not the other way around.
How much interest will $100,000 earn in a year?
Six rates, one pattern: every extra 0.10% on $100,000 is worth $100 a year. Here is what the October 2026 market pays:
| Rate | Provider | Interest on $100,000 in one year |
|---|---|---|
| 4.55% | General Finance (12 months) | $4,550 |
| 4.50% | Gold Band Finance, SBS Bank (12 months) | $4,500 |
| 4.40% | Welcome (12 months) | $4,400 |
| 4.05% | BNZ, Kiwibank, Heartland Bank (12 months) | $4,050 |
| 4.00% | ANZ, ASB (12 months) | $4,000 |
| 4.80% | General Finance, Gold Band Finance, Welcome (24 months) | $4,800 per year, or $9,600 over two years |
How do interest rates affect earnings on $100,000?
- Each 0.10 point adds $100 a year on $100,000.
- The 0.55-point gap between ANZ and General Finance is $550 a year.
- The 24-month top rate of 4.80% earns $9,600 before tax over the full term.
Compound the gap and it grows: $550 a year reinvested at similar rates becomes the price of a decent holiday over a three-year cycle. The rate, not the bank brand, does the heavy lifting.
For other balances, interest.co.nz’s deposit calculator runs the same math for any amount and tenure.
What are the best savings accounts with high interest rates?
If you want a competitive rate without locking money away, savings accounts are the alternative — and the ceiling in October 2026 sits at 3.25%. Three providers sit at that level, per DepositRates.co.nz’s tracking:
Which savings accounts offer competitive rates?
- Xceda Finance: 3.25% on a 90-day notice saver.
- Squirrel: 3.25% on on-call accounts.
- Wedge Money: 3.25% unconditional savings.
All three pay the same headline rate but structure access differently. The 90-day notice product asks for patience; the on-call and unconditional accounts give instant access. Same rate, different liquidity — pick the shape that matches how you spend.
How do notice accounts compare to term deposits?
- Notice saver: 3.25%, money reachable in 90 days.
- Term deposit: up to 4.55% at 12 months, money locked for the term.
- The difference on $100,000: $1,300 a year — that is the price of keeping your money reachable.
At 3.25%, the best notice saver pays 1.30 points less than the best 12-month term deposit. If the money has a defined job in 12 months, the term deposit wins; if it needs to stay within reach, the notice account is the rational middle path.
The trade-off is clean: liquidity costs 130 basis points in this market. Savers who can name the date they will need the money should let the term deposit pay for that clarity.
What are the current interest rates on New Zealand government bonds?
Government bonds are the country’s default safe benchmark, and they compete with term deposits for the same parked money. Yields on NZ government bonds move with wholesale markets; term-deposit rates move with bank funding competition — and right now, the banks are competing hard.
How do government bond rates compare to term deposits?
- Government bonds: lowest counterparty risk, market-traded, yields set by auction and secondary demand.
- Term deposits: bank credit risk, fixed rate, early-withdrawal penalties.
- The October 2026 term-deposit table — 4.55% at 12 months, up to 5.00% at five years — is competitive with, and can exceed, the bond alternative.
For most household savers, the bond comparison is theoretical. Bonds are bought and sold in market lots; term deposits are opened with a few clicks. The practical question is whether the government’s paper returns more than a challenger bank’s deposit — and in this cycle, the challengers are holding their own.
The pattern: neither product is a growth play, and both exist to protect capital. The difference is who owes you the money — the government or a bank — and which one is currently paying you more for the same patience.
Which bank is giving 7% interest on savings accounts?
No bank in New Zealand is paying 7% on savings in 2026. The claim circulates online, but the tracked best rates sit at 3.25% — less than half of 7%.
Is 7% interest on savings realistic in NZ?
- 7% would be roughly 1.5 times the best 12-month term-deposit rate (4.55%) and more than twice the best savings rate (3.25%).
- A rate that far above the rest of the market is a teaser — limited by balance, by time, or both — not a shelf product.
- If a 7% headline looks real, check it against a rate aggregator such as DepositRates.co.nz before acting.
What are the highest actual savings account rates?
- Xceda Finance 90-day notice saver: 3.25%.
- Squirrel on-call: 3.25%.
- Wedge Money unconditional: 3.25%.
NZ personal-finance blogs such as MoneyBalance (NZ commercial blog) recycle the same aggregator data, which is useful for context — but the base numbers all trace back to the trackers cited in this article.
Why this matters: chasing a 7% mirage delays the decision that actually pays. The real ceiling is 3.25% on savings and 4.55% on a 12-month term — those are the numbers worth acting on, and they will not be printed on a social media graphic.
Term deposit pros and cons
Term deposits trade flexibility for rate. The October 2026 pricing makes the trade attractive, but it is still a trade.
Upsides
- Fixed rate for the full term — no drift while the market moves.
- Top October 2026 rates beat every savings account: 4.55% at 12 months versus 3.25% on call.
- A defined maturity date suits goal-based saving — the money is out of reach, which is the point.
- The best rates come from smaller providers, which are easy to verify against the same tracker data used for the big banks.
Downsides
- Money is locked until maturity; early withdrawal costs interest or a fee.
- The rate is fixed — if market rates rise, the upside is missed.
- Smaller providers may have higher minimums, online-only access or narrower product ranges.
- Interest is taxable, so the headline rate is not the after-tax return.
The pattern: term deposits buy certainty with liquidity. If the money has a fixed date, the rate advantage is real; if it does not, the early-withdrawal penalty is the true cost of the mistake.
What’s confirmed and what’s unclear
The October 2026 rate table is rich on confirmed numbers and thin on certainty about how long they last.
Confirmed facts
- General Finance’s 4.55% leads the 12-month market, with Gold Band Finance and SBS Bank at 4.50%, on Canstar’s 9 October snapshot.
- ASB’s five-year rate of 5.00% was the highest five-year bank rate reported by interest.co.nz.
- The savings ceiling sits at 3.25% across notice-saver and on-call products tracked by DepositRates.co.nz.
- Big-four 12-month rates cluster between 4.00% and 4.05%.
What’s unclear
- Whether the top advertised rates hold through the rest of 2026, especially at smaller lenders with tighter funding needs.
- Whether ASB’s 5.00% five-year rate applies to every balance or carries conditions not shown in the rate table.
- Rabobank’s long-term leadership — 4.70% at three years, 4.90% at four years — comes from a third-party aggregator rather than a primary bank rate page, and sits in a lower-authority tier.
- The average NZ term-deposit rate across all providers and tenors is not published in a single authoritative figure; interest.co.nz tracks it, and the number shifts as banks adjust.
The split is telling: the market’s ceiling is confirmed by independent trackers, but its persistence is the open question. Rates are a snapshot, not a promise.
What the rate trackers say
“Term deposit rates in New Zealand sat around 4% to 4.35% in early 2026, and smaller banks were beating the big four.”
“The top deposit rates on the board include 3.25% notice-saver and on-call accounts.”
— DepositRates.co.nz
“ASB’s five-year rate of 5.00% was the highest five-year bank rate at the time.”
— interest.co.nz (interest-rate data specialists)
The implication: independent trackers agree on direction — challengers lead, big banks lag — even when their snapshots are taken days apart. The consistency is the signal.
The takeaway for NZ savers
The New Zealand fixed term deposit rates market in October 2026 rewards the saver who shops. General Finance, Gold Band and SBS are paying 4.50–4.55% for twelve-month money while ANZ, ASB, BNZ and Kiwibank sit at 4.00–4.05%, and that spread compounds every year it stays in your account. For a New Zealand saver with $100,000 to park, the choice is clear: quote the challengers before you accept your main bank’s renewal offer, or leave $550 a year on the table.
bnz.co.nz, anz.com.au, co-operativebank.co.nz, bnz.co.nz, asb.co.nz
Frequently asked questions
What is the minimum deposit amount for a term deposit in New Zealand?
Minimums vary by provider and product. Canstar’s term-deposit comparison lists the minimum for each product on a single table, and the provider’s product disclosure statement is the definitive reference. Confirm the floor before choosing a rate.
How is interest earned on term deposits taxed in NZ?
Term deposit interest is taxable as income, and most providers deduct resident withholding tax before the interest lands in your account. If your marginal tax rate is higher than the rate applied, the difference is settled at tax time; if it is lower, you receive a credit.
Are term deposits covered by the government deposit guarantee in New Zealand?
Eligible term deposits sit inside New Zealand’s deposit compensation scheme, which protects a capped amount per depositor per provider. Confirm your provider is licensed and check the current coverage rules before depositing large sums — if you hold more than the cap, splitting across providers is the standard strategy.
Can I withdraw my term deposit early and what are the penalties?
Most term deposits allow early withdrawal but charge a break fee or forfeit part of the interest. The exact penalty is set by each provider and written into the terms, so read that section before you sign.
What tenure should I choose for a term deposit?
October 2026 pricing pays more for longer: 4.55% at 12 months, 4.80% at 24 months, and 5.00% for five years at ASB. Choose the shortest tenure that still gives you an acceptable rate, so you can reprice when the market moves.
How often do banks update their term deposit rates?
Banks adjust term-deposit rates through the year as funding costs shift. ASB lifted its one-year rate to 4.00% in October 2026 while BNZ and Kiwibank held at 4.05%; aggregators such as Canstar and interest.co.nz refresh their tables regularly, so recheck before locking in.
The sequence matters: confirm the rate, check the tenure, read the penalty clause, then sign.
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