Connections

Work with your personal adviser to grow your wealth

Term Deposit Rates – Why Have They Remained Stubbornly Low?

Facebook
Twitter
LinkedIn

So, if interest rates have started to go up (notable as the final upswing in the swap rate graph above), why have most Term Deposit rates not followed suit? There are many factors, but the one overriding reason is that the banks don’t really need your money at the moment.

Late last year The Reserve Bank of New Zealand introduced a Funding for Lending Programme, which gives registered bank access to funds at the Official Cash Rate, which is currently set at 0.25%. The total amount available under this programme is $28 billion.

Hence the high street banks aren’t as worried as they used to be about whether or not you roll over your Term Deposit.

If the limited income you receive from term deposits is causing concern please contact your adviser at Hamilton Hindin Greene who can assess whether there are alternative strategies that are suitable for you.

Related Posts

HHG’s Social Media

Social media is one of the most widely used sources of information for many of our…

HHG's Sponsored Charity - The Cholmondeley Children’s Foundation

This year’s Charitable Donation went to support The Cholmondeley Children’s Foundation. Thank you for all your…

HHG Sponsored Athlete - Kaspar Hayes

HHG’s sponsors U20 New Zealand Handball Player – Kaspar Hayes My name is Kaspar Hayes and…