A term deposit is the calmest place in the savings market: you lock money away for a fixed term at a guaranteed rate. What you lose is flexibility; what you gain is certainty. The comparison below is ordered the way people actually compare them, by term, with the top rate highlighted per term.
Term deposit rates by term
These are the headline rates each bank publishes for its standard term deposit, as at 20 Sep 2026. Many banks offer a higher special or limited-time rate and a lower standard rate; the figures below are the rates quoted for new deposits at the stated minimum.
| Bank | Rate p.a. | Minimum |
|---|---|---|
| ASB | 3.55% | $5,000 |
| BNZ | 3.55% | $2,000 |
| Kiwibank | 3.55% | $1,000 |
| Heartland | 3.55% | $1,000 |
| SBS | 3.55% | $1,000 |
| Westpac | 3.45% | $5,000 |
| Co-operative Bank | 3.60% | $2,000 |
| Bank | Rate p.a. | Minimum |
|---|---|---|
| BNZ | 4.05% | $2,000 |
| Kiwibank | 4.05% | $1,000 |
| SBS | 4.05% | $1,000 |
| ASB | 4.00% | $5,000 |
| Co-operative Bank | 4.00% | $2,000 |
| Heartland | 3.90% | $1,000 |
| TSB | 3.90% | $1,000 |
| Westpac | 3.90% | $5,000 |
| Bank | Rate p.a. | Minimum |
|---|---|---|
| Westpac | 4.30% | $5,000 |
| ASB | 4.30% | $5,000 |
| Kiwibank | 4.30% | $1,000 |
| Heartland | 4.30% | $1,000 |
| BNZ | 4.20% | $2,000 |
| TSB | 4.20% | $1,000 |
| SBS | 4.35% | $1,000 |
| Bank | Rate p.a. | Minimum |
|---|---|---|
| ASB | 5.00% | $5,000 |
| BNZ | 4.70% | $2,000 |
| Kiwibank | 4.70% | $1,000 |
| Heartland | 4.70% | $1,000 |
| TSB | 4.70% | $1,000 |
| Westpac | 4.60% | $5,000 |
These figures are a snapshot taken from the banks' sites on 20 Sep 2026. Rates change whenever wholesale rates move, so the numbers above will drift. Treat this page as a guide, not a promise, and confirm the live rate with the bank before you commit money.
How to read the table
- Term length matters more than the headline. The 5 year rate is usually the highest but locks you in longest; a 6 month rate is lower but frees your money sooner.
- Minimums vary. Kiwibank takes $1,000, ASB wants $5,000, and some set higher floors. A low minimum does not mean a bad rate, so check both together.
- Special vs standard. Several banks publish a special or limited-time rate and a lower standard rate. The tables show the quoted new-deposit rate; the exact offer you qualify for can differ.
- The rate is fixed for the term. Withdraw early and you normally lose months of interest as a penalty, so a term deposit is money you will not need until maturity.
Tax and PIE term deposits
A standard term deposit has resident withholding tax deducted automatically, at up to 33% based on the rate your bank holds for you. Several banks (Kiwibank among them) also offer a PIE term deposit, where the interest is taxed at your prescribed investor rate of 10.5%, 17.5% or 28% instead. For a higher-rate taxpayer that PIE version can leave you keeping noticeably more. The bank withholds the tax either way, so there is nothing extra to file on the deposit itself.
Laddering for rate and flexibility
Because longer terms pay more but lock your money away, a common trick is a ladder: split your savings across terms that come due one after another. Some money at 6 months, some at 1 year, some at 2 years. Every few months one rung matures, so you keep getting the rate of the longer terms while regularly freeing up cash, no penalty involved. We cover the mechanics in our term deposits explained guide, and the numbers are yours to play with in the term deposit calculator.