With global wholesale interest rates on the move again we thought it would be advantageous for our investors to have a comparison between bank term deposits and the fixed interest investments available on the New Zealand debt market. Below is a list of just a few of the listed fixed interest investments available. Fixed Interest Issues
|
Issuer |
Code |
Maturity Date |
Yield |
|
Cooperative Bank |
28/07/2026 |
6.50% |
|
|
Infratil |
15/06/2024 |
5.95% |
|
|
ASB Bank |
15/12/2026 |
5.30% |
|
|
Kiwi Bank |
15/07/2024 |
5.19% |
|
|
Infratil |
15/06/2021 |
5.15% |
|
|
Precinct Properties |
17/12/2021 |
5.15% |
|
|
Bank of New Zealand |
17/12/2025 |
5.10% |
|
|
Mercury Energy |
11/07/1944 |
5.10% |
|
|
Westpac Bank |
01/09/2026 |
5.10% |
|
|
New Zealand Post |
15/11/2039 |
5.05% |
|
|
Infratil |
15/02/2020 |
5.00% |
|
|
Z Energy |
01/11/2023 |
5.00% |
|
|
Wellington Airport |
16/06/2025 |
4.95% |
|
|
Sky Television |
31/03/2021 |
4.90% |
|
|
Kiwi Property Group |
07/09/2023 |
4.75% |
|
|
Wellington Airport |
05/08/2024 |
4.75% |
|
|
Trustpower |
15/12/2021 |
4.73% |
|
|
Trustpower |
15/12/2022 |
4.73% |
|
|
ASB Bank |
15/06/2024 |
4.70% |
|
|
Infratil |
15/06/2017 |
4.70% |
|
|
Infratil |
15/11/2019 |
4.70% |
|
|
Infratil |
15/11/2017 |
4.65% |
|
|
Spark Finance |
07/09/2026 |
4.62% |
|
|
Infratil |
15/11/2018 |
4.60% |
|
|
Z Energy |
01/11/2021 |
4.55% |
As you can see there are some attractive rates available from some of New Zealand’s well known businesses. Below we have tabled the one, three and five year term deposits rates available from the major banks in New Zealand.
Term Deposits
|
Institution |
12 Months |
3 years |
5 years |
|
ANZ |
3.35% |
3.39% |
4.20% |
|
ASB |
3.20% |
4.00% |
4.25% |
|
BNZ |
3.25% |
4.00% |
4.25% |
|
Cooperative Bank |
3.40% |
3.60% |
3.70% |
|
Heartland Bank |
3.40% |
3.70% |
3.80% |
|
HSBC |
3.00% |
3.05% |
3.15% |
|
SBS Bank |
3.65% |
4.00% |
|
|
TSB Bank |
3.65% |
4.05% |
4.30% |
|
Westpac |
3.40% |
3.80% |
4.10% |
There are several not so well known benefits to listed fixed interest over term deposits.
- If you break a term deposit you may lose up to 3% of the accrued interest, with current rates that is nearly the entire return.
- If you sell a fixed interest investment the maximum fee is only 1% and may be less depending on the size and type.
- There is a 32 day stand down period before you can access your term deposit if you decide to break it.
- A fixed interest investment, once sold, will have the funds in your account in three business days.
- With recent changes to banking legislation it now means that if a bank gets into financial trouble they can use your term deposit to prop up the bank, meaning they are not as safe as they used to be.
With some attractive rates available, think of calling your financial adviser the next time your term deposit is due to roll over, or if you have just rolled one over talk to one of our advisers today to see if it would be in your best interest to review this investment.
Please note that some of the listed products are complex in nature and it is advised to speak with your financial adviser before making a decision to invest in any of the products listed above. Yields as at the 14/03/2017, subject to change.
