New Zealand’s biggest bank just pushed its 1-year mortgage rate to 4.69%, and the 2-year rate to 5.29%—its most aggressive hike in years, according to a 1News report. Whether you’re saving or borrowing, those numbers matter: New Zealand’s interest rate environment is shifting, and getting a clear picture of what’s on offer right now across the major banks could put hundreds in your pocket. The key figure to track is the cash rate, which stands at 2.25% as of April 2026.

4 related posts

Benchmark Rate: 2.25% · Historical Average: 6.57% (1985-2026) · 1-Year Special Mortgage: 4.59%-4.69% · 18-Month Fixed Mortgage: 5.59% · Top Term Deposit: Just under 4.35% p.a.

Quick snapshot

1Confirmed facts
2What’s unclear
  • Whether any NZ bank is currently offering a true 5% term deposit (most top deals fall just under 4.35%)
  • How far mortgage rates will rise beyond the April 2026 hikes
  • Whether the RBNZ signals further OCR increases in the months ahead
3Timeline signal
  • April 2026: New Zealand’s largest bank raises 1-year to 4.69%, 2-year to 5.29%
  • 1985–2026: Historical average of 6.57% shows how far current rates have to climb to reach past norms
4What’s next
  • Rate-conscious borrowers should compare specials before the next hike cycle
  • Savers who act now can lock in above-average returns before further market shifts
Metric Value Source
Current Benchmark 2.25% Trading Economics
Recent Mortgage Hike 1-year to 4.69% 1News
Top Term Deposit 4.35% (5-year) Heartland Bank official rates
Historical Avg 6.57% Trading Economics

Which NZ bank has the best interest rates?

Savings accounts

Savings account rates swing wildly between the big banks and the challengers.

Bank Account Rate
Westpac Notice Saver 32 days 3.00%
Heartland Bank 90 Day Notice Saver 2.95%
Kiwibank Notice Saver 90 days 2.35%
Heartland Bank Digital Saver 2.05%
BNZ Rapid Save 1.70%
ANZ Online Savings 0.40%
ASB Savings On Call 0.10%

The pattern is clear: challengers like Westpac and Heartland Bank consistently outpace the big four, with notice savers offering the best balance of accessibility and yield.

The upshot

The spread between the worst and best savings account is stark: a dollar sitting in ASB’s Savings On Call earns 30× less interest than the same dollar in Westpac’s Notice Saver 32-day account.

Mortgages

New Zealand’s biggest bank hiked its 1-year special mortgage to 4.69% in April 2026, with the 2-year special climbing to 5.29%, according to 1News. Mortgage specials across major lenders cluster in the 4.5%–5.5% range for borrowers with at least 20% equity. Specific current offers vary, and borrowers should check directly with banks for the latest figures.

Term deposits

  • Term deposits typically outperform savings accounts because fixed rates shield savers from the volatility that eats into variable-rate returns
  • Heartland Bank’s term deposit rates: 3.20% for 3 months, 3.55% for 12 months, 4.35% for 5 years, as listed on Heartland Bank’s website
  • Rabobank’s 2-year term deposit rate is 4.40%, beating most competitors at the 2-year mark
  • Opes Partners (investment analysts) urges savers to verify current rates before committing, since offers shift frequently

Heartland Bank leads across most term deposit durations, and Rabobank edges ahead at the 2-year mark. Most top offers sit around 4.35%, which makes the gap between a quick decision and a delayed one very real: lock in before the next hike, and you hold a rate before the market moves higher.

Bottom line: Savings account holders earning less than 1% are leaving returns on the table. Switching to a notice saver or term deposit can significantly improve what your money earns, especially as mortgage rates climb.

Which NZ bank has the highest interest rate savings account?

Current top savings rates

Three banks dominate the top tier for savings account returns.

Bank Account Rate Min. Balance
Westpac Notice Saver 32 days 3.00% $1
Heartland Bank 90 Day Notice Saver 2.95% $1
Kiwibank Notice Saver 90 days 2.35% $1

Notice savers from Westpac and Heartland Bank deliver the highest accessible returns without locking money away for fixed terms.

High-yield options

  • Westpac and Heartland Bank lead the notice saver category, both hitting 3.00% or just below—though Westpac requires only 32 days’ notice versus Heartland’s 90 days
  • The big four banks (ANZ, ASB, BNZ, Westpac) offer basic savings rates from 0.10% to 1.70%, far below what challengers pay
  • Notice savers let you access your money with a short notification window, making them a practical middle ground between flexibility and yield
What to watch

Squirrel’s ranking notes that Kiwibank, Heartland, Rabobank, and Westpac offer notice saver accounts up to 3.00%—confirming that serious savers have strong alternatives to the majors.

The implication: notice savers and term deposits are the real savings battleground, not traditional high-interest savings accounts. For money you won’t need immediately, a term deposit or notice saver consistently beats anything the big four offer on demand.

What is a good interest rate in NZ right now?

Benchmarks for savings and loans

Two figures anchor the current picture.

Rate Type Good Rate Right Now Context
Cash rate (benchmark) 2.25% Set by the Reserve Bank of New Zealand
Top term deposit (1-year) 3.55% Heartland Bank, per official rates
Mortgage special (1-year) 4.59%–4.69% Top specials from major lenders
Historical average 6.57% 1985–2026 baseline

These benchmarks show where the market sits relative to historical norms and where top performers exceed the baseline.

Interest rates have climbed meaningfully from pandemic lows, but they remain well below the 6.57% historical average, according to Trading Economics. Savers are finally earning returns that keep pace with costs, and borrowers face a genuine choice between locking in a longer term now or gambling that rates will soften.

Recent changes

New Zealand’s biggest bank pushed its 1-year special mortgage to 4.69% and 2-year to 5.29% in April 2026, per 1News. The 18-month fixed standard mortgage rate sits at 5.59%, according to Interest.co.nz’s reporting. For borrowers, the writing is on the wall: rate specials are rising, and anyone refinancing or buying should compare what’s available before the next hike cycle.

The catch

Mortgage rates are climbing, but they remain well below the historical average of 6.57%. The risk of waiting: if the RBNZ continues raising the cash rate, mortgage specials could follow.

Where can I get 5% on a term deposit?

Top term deposit rates

Eight banks compete at or near the top tier across different deposit lengths.

Duration Best Available Bank(s)
1-year fixed 3.55% Heartland Bank
2-year fixed 4.40% Rabobank
5-year fixed 4.35% Heartland Bank

The gap between short and long-term rates matters: Rabobank’s 2-year rate outpaces Heartland’s 1-year, making duration a key decision factor.

The paradox

No NZ bank is currently advertising a true 5% term deposit. The best offers cluster around 4.35%, and that gap matters: locking in now at 4.35% means you’re banking a rate before the market potentially moves higher.

MoneyHub’s rate tracker confirms that top term deposits from trusted banks earn around 4.35% p.a. Heartland Bank leads across most durations with its 5-year fixed rate of 4.35%, while Rabobank’s 2-year at 4.40% is the standout for mid-range terms. The practical move: verify the latest figures with each bank before committing.

Bank comparisons

  • Heartland Bank: 3.55% (12-month), 4.35% (5-year) — consistent leader across most terms
  • Rabobank: 4.40% (2-year) — best at the 2-year mark
  • Westpac: 4.59% (1-year special mortgage), 2.85% (3-month term deposit) — mortgage strength, shorter deposits lag
  • Westpac offers regular income options for term deposits 6 months or longer, per Westpac NZ

Heartland Bank leads across most term deposit durations, and Rabobank edges ahead at the 2-year mark. Most top offers sit around 4.35%, which makes the gap between a quick decision and a delayed one very real: lock in before the next hike, and you hold a rate before the market moves higher.

What is the NZ interest rates forecast?

Short-term outlook

Two developments define the immediate outlook. For the most up-to-date information on savings and mortgage rates, check out Taranaki road closures today.

  • New Zealand’s biggest bank raised its 1-year to 4.69% and 2-year to 5.29% in April 2026, per 1News—its most aggressive hike in the current cycle
  • Specific forecasts beyond that point are not confirmed in current data; borrowers and savers should monitor RBNZ signals closely
What to watch

The RBNZ’s next OCR decision will be the clearest signal for whether mortgage and deposit rates keep climbing. A hold suggests rates have peaked; a hike means the upward pressure continues.

Historical trends

Four decades of data put today’s rates in perspective.

Period Average Rate Source
1985–2026 6.57% Trading Economics interest rate data
Current benchmark 2.25% Trading Economics

The implication: rates are climbing, but they remain far below the 6.57% historical average. Savers who lock in a term deposit now at 4.35% are earning above today’s cash rate—but well below where rates have been.

If the RBNZ continues tightening, term deposits could climb further, but borrowers will pay more too.

Bottom line: New Zealand’s biggest bank just raised its 1-year mortgage rate to 4.69% and 2-year to 5.29%, and that pressure is spreading across the market. Savers face a clear trade-off: act now and lock in above-average returns on term deposits, or wait and risk a lower rate if the market keeps climbing. Borrowers who can secure a fixed rate now have a window before the next hike cycle locks them into higher costs.

What we know—and what we don’t

Confirmed

  • New Zealand’s benchmark rate is 2.25% (Trading Economics)
  • The biggest bank hiked its 1-year mortgage special to 4.69% in April 2026 (1News)
  • Heartland Bank leads term deposit rates across most durations at 4.35% for 5 years (Opes Partners)
  • Westpac’s 32-day Notice Saver pays 3.00%, the highest among notice accounts (Interest.co.nz savings comparison)

Unclear

  • Whether any NZ bank is currently offering a true 5% term deposit
  • Whether the RBNZ signals further OCR increases in the months ahead
  • How much further mortgage specials will climb beyond the April 2026 hikes

What the experts say

Heartland Bank currently offers the highest 5 year fixed term deposit interest rate at 4.35%.

— Opes Partners (investment analysts)

Earn around 4.35% p.a. with top term deposits from trusted banks.

— MoneyHub (rate comparators)

Bottom line: New Zealand’s biggest bank just raised its 1-year mortgage rate to 4.69% and 2-year to 5.29%, and that pressure is spreading across the market. Savers who wait risk locking in lower returns if the market climbs further, while borrowers who act now can secure current rates before the next increase cycle.

Related reading: NZ Bank Interest Rates: Best Savings, Mortgages & Term Deposits · ANZ Savings Interest Rates – Current Rates and Bonus Conditions

Additional sources

moneyhub.co.nz, westpac.co.nz, squirrel.co.nz, canstar.co.nz, kiwibank.co.nz, anz.co.nz, interest.co.nz, asb.co.nz

Similar adjustments appear in ASB’s mortgage and deposit rate changes throughout 2024-2025, mirroring shifts from the Reserve Bank of New Zealand.

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Frequently asked questions

What are the lowest interest rates in NZ?

The lowest rates typically apply to standard savings accounts from major banks. ASB’s Savings On Call sits at 0.10%, and ANZ’s Online Savings at 0.40%—both far below what’s available from challengers like Heartland Bank or Westpac. For deposits, the lowest mortgage specials cluster around 4.59%–4.69% for 1-year fixed terms.

What are ANZ interest rates in NZ?

ANZ’s standard online savings account pays 0.40% as of April 2026, per Interest.co.nz. Their 1-year special mortgage rate recently climbed to 4.69% following their April 2026 hike, according to 1News reporting.

What are Kiwibank interest rates in NZ?

Kiwibank’s 90 Day Notice Saver pays 2.35%, offering a solid middle-ground for savers who want better returns than the big banks without locking into a fixed term. Their mortgage specials vary; check directly with Kiwibank for current offers.

What does the NZ interest rates history graph show?

Trading Economics data spanning 1985–2026 shows New Zealand’s cash rate averaging 6.57% over that period. Today’s rate of 2.25% sits well below the historical norm, though recent hikes signal a sustained climb from pandemic-era lows.

Which bank is offering 4.99% interest rate in NZ?

No major NZ bank is currently advertising a 4.99% mortgage rate in public data. The closest figures cluster around 4.59%–4.69% for 1-year specials, with some 18-month fixed rates around 5.59%. Check directly with lenders for the latest offers.

Which bank gives 9.5% interest?

No standard NZ savings account, term deposit, or mortgage currently offers 9.5%. That figure is not reflected in verified rates from any major bank or challenger lender as of April 2026.

Can a 70 year old get a 20 year mortgage?

Age limits for mortgages vary by lender. Most NZ banks have maximum lending terms that extend to retirement age or beyond, but specific policies differ. Prospective borrowers should discuss their situation directly with a lender or mortgage broker.

How to invest $100,000 in NZ?

With $100,000 to invest, term deposits offer a straightforward, low-risk option: Heartland Bank’s 5-year fixed rate at 4.35% would earn approximately $4,350 in annual interest. Notice savers from Westpac or Heartland Bank offer flexibility with returns around 3.00%. A financial adviser can help tailor the approach to your goals and timeline.