NZ Bank Interest Rates: Best Savings, Mortgages & Term Deposits

If you’ve been letting your savings sit in the same account for the past year, there’s a good chance you’re missing out. New Zealand’s banks are offering rates that span a surprisingly wide range — from under 0.50% on some everyday accounts to above 4% on the best term deposits — and the gap between the two has rarely been wider. This comparison pulls together the latest rates from Heartland Bank, BNZ, TSB, Westpac, and more, so you can see exactly where the market stands and which institutions are currently leading the pack.

Benchmark Rate: 2.25% · Westpac 1-Year Special: 4.59% p.a. · Interest.co.nz 18-Month Standard: 5.59% · Interest.co.nz Special LVR <80%: 4.49% · Top Term Deposits: Just under 4% p.a.

Which NZ bank has the best interest rates?

Six banks and rate aggregators, three product categories, and a spread that can mean thousands of dollars in interest earned — or paid — over a year. The honest answer is that no single bank leads across all three. Heartland Bank dominates the term deposit space, BNZ holds the edge on several mortgage terms, and on everyday savings accounts the best deals come from notice saver accounts rather than standard transaction accounts.

Savings accounts

Savings account rates in New Zealand are sharply divided between on-call accounts and notice savers. On-call accounts like ANZ Online Savings at 0.40% or SBS Bank i-Save at 0.40% offer no barriers to access but nearly negligible returns. The better options are notice savers: Westpac Notice Saver 32 days pays 3.00%, Heartland Bank 90-day Notice Saver pays 3.20%, and Heartland Bank 32 Day Notice Saver pays 3.00% (Interest.co.nz, call account rate aggregator). Kiwibank Notice Saver 90 days offers a range from 1.80% to 2.35%, making it mid-pack among notice products.

For a $10,000 deposit left untouched for 32 days, the difference between Westpac’s 3.00% and ANZ’s 0.40% works out to roughly $210 in extra annual interest — a gap worth knowing about before you leave money sitting idle.

Mortgages

Fixed mortgage rates span from 4.49% to above 5.99% across major banks depending on term and whether the borrower qualifies for a special rate. TSB currently offers the best advertised 12-month fixed rate at 4.49%, according to Squirrel (mortgage rate comparison service). BNZ leads at 18 months with 4.79% and at two years with 4.89%. For longer terms, Westpac’s special two-year fixed rate sits at 5.19% — notably higher than the one-year specials, reflecting lender expectations of further OCR pressure. The Co-operative Bank offers the lowest floating mortgage rate at 4.99%, giving borrowers who prefer variable-rate flexibility a competitive option.

Term deposits

Term deposit rates are where Heartland Bank consistently leads. Both Heartland Bank and SBS Bank currently offer the highest 12-month rate at 4.00% (Opes Partners, 19 April 2026). For longer horizons, Heartland Bank leads 3-year TDs at 4.15% and 5-year TDs at 4.35%. Rabobank is competitive at two years with 4.40% on its standard online term deposit (Rabobank official rates). Rabobank also offers a 6-month term deposit at 3.50%, according to MoneyHub (NZ finance comparison platform). Westpac’s shortest-term option, a 3-month TD, pays 2.85%.

Which NZ bank has the highest interest rate savings account?

Among major banks and their mainstream products, Heartland Bank’s Notice Saver accounts currently lead. The 90-day Notice Saver pays 3.20% per annum, while the 32 Day Notice Saver pays 3.00% — both substantially above the 0.40% available on ANZ’s online savings account or SBS Bank’s i-Save. Heartland Bank’s official savings rate page lists these as current offers as of 2026.

Current top savings rates

A snapshot of on-call and short-notice accounts across major institutions shows Westpac Notice Saver 32 days at 3.00%, Heartland Bank 90-day Notice Saver at 3.20%, and Rabobank PremiumSaver with a potential rate up to 2.25% for balances up to $100,000. Heartland Bank also offers a Cash PIE account at 2.35%, which benefits from a lower Prescribed Investor Rate for eligible investors. For the highest guaranteed rate without any notice period, Westpac’s 3-month TD at 2.85% sits above most on-call accounts.

High-yield options

The trade-off with notice saver accounts is access: funds are locked until the notice period expires, meaning 32 or 90 days depending on the account. For investors who can plan ahead, Heartland Bank’s Digital Saver at 2.05% is a middle ground — no notice period, but a better return than most standard on-call accounts. BNZ Rapid Save at 1.70% and ICBC Smart Saver at 2.00% fall between these tiers.

What is a good interest rate in NZ right now?

Using the New Zealand benchmark rate of 2.25% (Trading Economics) as a baseline, a “good” rate depends entirely on which product type you’re evaluating. For savings accounts, anything above 3% puts you in the top tier of standard retail products. For term deposits, the best one-year rates are just under 4%, while three-year rates peak around 4.15%. For mortgages, one-year specials from major banks hover near 4.59%, with two-year specials pushing above 5%.

Benchmarks for savings and loans

A useful rule of thumb: if your savings account is earning less than 2%, you are almost certainly underperforming the market. If your mortgage rate is above 5.5% on a one-year fixed term, it may be worth calling your bank or checking what competitors are offering. Squirrel (mortgage rate comparison service) shows that rates for major banks range from 4.49% to 5.99% across terms — a wide spread that rewards shopping around.

Market averages

According to MoneyHub (NZ finance comparison platform), the top term deposit rates are just under 4% per annum for 12 months. Squirrel’s data confirms that the best advertised one-year fixed mortgage rate sits at 4.49%, while standard rates at 18 months can reach 5.59%. The gap between savings and mortgage rates reflects the margin banks are maintaining in the current environment.

Where can I get 5% on a term deposit?

The honest answer is that true 5% term deposit rates are not currently available across the mainstream market. The highest one-year TD rate is 4.00%, and the best five-year rate sits at 4.35% from Heartland Bank. Rabobank’s two-year rate of 4.40% gets closest, but even that falls 60 basis points short of 5%.

Top term deposit rates

The closest products to the 5% mark are Heartland Bank’s longer-term options: 4.15% on a three-year TD and 4.35% on a five-year TD. Rabobank’s two-year TD at 4.40% and six-month TD at 3.50% are also among the most competitive in the market. For shorter terms, Westpac’s 3-month TD at 2.85% and Kiwibank’s 6-month TD (minimum $10,000, per MoneyHub) offer lower returns but greater flexibility.

Bank comparisons

Opes Partners (investment analysts) confirms that Heartland Bank and SBS Bank are currently tied for the best 12-month TD rate at 4.00%. For 18 months, both institutions also offer 4.00%. Heartland Bank extends its lead at three years (4.15%) and five years (4.35%). BNZ’s five-year TD has a minimum of $2,000, per MoneyHub.

What are the current NZ bank interest rates for mortgages?

Fixed mortgage rates from New Zealand’s major lenders range from 4.49% for a one-year special up to 5.99% for longer standard terms. The spread is wide enough that locking in the right term and lender matters significantly for long-term borrowing costs.

Fixed rates

Squirrel (mortgage rate comparison service) shows TSB at 4.49% for a 12-month fixed rate, BNZ at 4.79% for 18 months and 4.89% for two years, and Westpac at 5.19% for a special two-year fixed rate. Standard rates — particularly 18-month terms — can reach 5.59% on Interest.co.nz, making the distinction between special and standard offers critical when comparing.

Special vs standard

Special rates typically require a lower loan-to-value ratio (LVR), often below 80%, and may apply only to owner-occupiers. Interest.co.nz’s special LVR below 80% rate sits at 4.49%, which matches TSB’s advertised special — indicating that competitive specials are clustered around that mark for one-year terms. The Co-operative Bank offers the lowest floating rate at 4.99%, which may suit borrowers who want variable-rate flexibility without jumping to a full fixed term.

The implication for borrowers is clear: the gap between the best one-year special and a two-year standard can exceed 70 basis points, translating to thousands of dollars over the life of a mortgage. For those looking to manage their business finances, the Santander business banking login provides convenient access to online services. Santander business banking login

NZ Bank Interest Rates Comparison Table

Six product types across six banks reveal one pattern: notice saver accounts outperform on-call accounts by a wide margin, and term deposits beat most savings products — but at the cost of locking in funds.

Rate Specifications

Twelve product entries across seven institutions, sourced from official bank pages and verified comparison platforms — the data reflects current offers as of April 2026.

Confirmed facts vs rumors

Five items sourced from official bank sites and verified comparison platforms, alongside two areas where precise data remains elusive.

• Heartland Bank 12-month TD rate is verified at 4.00% by Opes Partners (19 April 2026) and confirmed independently by tier-2 sources.
• BNZ 18-month fixed mortgage at 4.79% and two-year at 4.89% are listed on Squirrel’s mortgage rate comparison table.
• Westpac Notice Saver 32 days at 3.00% and Heartland Bank Digital Saver at 2.05% are confirmed on official bank pages.
• Rabobank 2-year TD at 4.40% is listed on Rabobank’s official online savings rates page.
• Mortgage rates for major banks range 4.49% to 5.99% depending on term and lender, per Squirrel’s aggregated data.
• Exact availability of term deposits near 5% across all banks: unconfirmed — top available rate sits at 4.40% (Rabobank 2-year).
• Specific OCR forecast for 2026: not confirmed in current sourced data — lenders have begun hiking but no official forward guidance cited.

What experts are saying

Heartland Bank currently offers the highest 3-year fixed term deposit interest rate at 4.15%.

— Opes Partners (Investment Analysts, opespartners.co.nz)

Out of the major banks, the highest 12-month fixed term deposit interest rate is 4.00%. This is currently offered by two banks: Heartland Bank and SBS Bank. These interest rates were last updated on Sunday 19 April 2026.

— Squirrel (Mortgage Rate Comparison Service, squirrel.co.nz)

Fixed mortgage rates have already begun rising, with one-year specials moving past 4.69% and two-year specials approaching 5.29%.

— Interest.co.nz (Rate Aggregator, interest.co.nz)

For NZ investors weighing whether to lock in a term deposit or keep funds liquid, the data shows a clear trade-off: Heartland Bank’s 4.15% three-year rate versus its 90-day Notice Saver at 3.20%. The 95-basis-point premium for a longer lock-in is meaningful, but only if you can afford to tie up funds for three years. For borrowers, the message is equally clear: the gap between TSB’s 4.49% one-year special and Westpac’s 5.19% two-year special is already 70 basis points — a difference of roughly $1,750 in interest on a $250,000 mortgage over two years.

Summary

New Zealand’s bank interest rate market in April 2026 presents a clear split: savers who stick with standard on-call accounts are leaving hundreds of dollars on the table, while borrowers who don’t compare mortgage specials before fixing are paying a real premium. Heartland Bank dominates the term deposit and notice saver space, BNZ and TSB lead on fixed mortgage rates, and the gap between the best and worst offers across all categories has widened enough that a 10-minute comparison could be worth thousands over a year. The implication for borrowers is that renewal season deserves more than a quick glance at your existing bank’s offer — and for savers, the days of passively accepting below-1% returns on everyday accounts should be over.

Related reading: ANZ Savings Interest Rates

Complementing top rates from Westpac and others, the best NZ term deposit rates reveal competitive options across New Zealand’s providers for 2026.

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