Compare Term Deposit Rates NZ: Highest 12-Month Bank Rates

If you’ve been shopping around for a term deposit lately, you may have noticed the numbers on offer right now look quite different from a few years ago. Rates have shifted enough that it’s worth taking a fresh look at what the major banks are paying — and whether smaller players might offer something better. This guide lays out the current landscape for 12-month terms, with specific figures from the providers doing the most to attract your savings.

Top rate mentioned: 5.13% · Providers compared: over 13 · Key banks: ANZ, ASB, BNZ, Kiwibank

The table below summarises the key rate figures that anchor this comparison across providers and term lengths.

Which bank has the best term deposit rates in NZ?

Major banks dominate the New Zealand savings landscape, but their rates for 12-month term deposits cluster tightly together. Canstar tracks rates from 12 major NZ financial institutions including ANZ, ASB, BNZ, Heartland Bank, Kiwibank, Rabobank, SBS Bank, The Co-operative Bank, TSB Bank, Unity, and Westpac. The pattern across those institutions shows a familiar spread: most major banks land between 3.65% and 3.75% for a 12-month term.

Major banks rates

• ASB Bank offers 3.70% p.a. for 12-month term deposits (ASB Bank)
• Westpac NZ offers 3.75% p.a. for 12-month term deposits (Westpac NZ)
• ANZ offers 3.70% p.a. for 12-month term deposits (interest.co.nz)
• Kiwibank offers 3.75% p.a. for 12-month term deposits (interest.co.nz)
• Bank of Baroda offers 3.65% p.a. for 12-month term deposits (interest.co.nz)

Minimum deposit requirements vary: Westpac requires a minimum $5,000 deposit for term deposits (Westpac NZ), while ANZ sets a $10,000 minimum for its 12-month products (BusinessDesk). The implication: if you’re working with a smaller lump sum, some of the big four may not be your most practical option.

Smaller banks rates

Specialist lenders and smaller banks often compete for deposits more aggressively. Xceda Finance, for instance, offers 4.25% p.a. for 12-month term deposits with no fees, according to their published rate schedule. That’s a full 0.50 percentage points above the ASB 12-month rate. Xceda Finance describes its value proposition directly: they provide secured term deposit accounts at better rates than the main banks.

Which bank is offering the highest term deposit rate?

The honest answer is that the highest rate depends on the term length you choose. For 12-month products, the major bank ceiling sits around 3.75% to 3.80%. For longer terms, the numbers climb noticeably — especially for specialist providers.

Current top rates

Canstar’s comparison data shows the highest 24-month term deposit rate reaches 4.60% p.a. among the institutions they track. For Xceda Finance specifically, the rate ladder runs as follows: 4.25% for 12 months, 4.55% for 18 months, 4.55% for 2 years, 4.65% for 3 years, 4.80% for 4 years, and 5.00% for 5 years.

Rates up to 5.13%

The headline figure of 5.13% cited in some comparisons appears to reference specific promotional or short-term offers that may have shifted since publication. The most reliably confirmed high-rate figure currently available is Xceda Finance’s 5.00% p.a. for 5-year terms, valid from 10 April 2026 according to their published schedule. Kiwibank also offers 4.80% for 5-year terms.

Where can I get 5% on a term deposit?

Chasing the 5% mark narrows your options considerably. Most major New Zealand banks top out in the 4.70% to 4.80% range for multi-year terms. ANZ, for example, offers 4.70% p.a. for 5-year term deposits. To reach or exceed 5% p.a., you need to look at specialist lenders — specifically Xceda Finance’s 5-year product at 5.00%.

Providers offering near 5%

• Xceda Finance 5-year term deposit: 5.00% p.a. (Xceda Finance)
• Xceda Finance 4-year term deposit: 4.80% p.a.
• Kiwibank 5-year term deposit: 4.80% p.a. (interest.co.nz)
• ANZ 5-year term deposit: 4.70% p.a. (interest.co.nz)
• Xceda Finance 3-year term deposit: 4.65% p.a.

Term lengths for high rates

The pattern is clear: longer terms reward you with higher rates. For 12-month deposits, even the best major bank deal lands around 3.75% to 3.80%. But stretch that horizon to five years and the best available rate reaches 5.00%. The trade-off is liquidity — your money is locked away for longer, and early withdrawal penalties typically apply.

For terms of six months or longer, Westpac NZ allows customers to choose whether interest is paid monthly or quarterly into their nominated bank account. Not all providers offer that flexibility, so it pays to ask about interest payment frequency if regular income from your savings matters to you.

What is the most trusted bank in New Zealand?

Trust in banking is a nuanced topic. The major banks — ANZ, ASB, BNZ, and Westpac — benefit from size, established branch networks, and broader financial product ranges. Canstar tracks these institutions alongside smaller players for their term deposit comparisons because they collectively hold the majority of New Zealand household deposits.

Consumer best and worst banks

Consumer trust surveys and provider ratings are published regularly by interest.co.nz, which also maintains credit ratings for New Zealand financial institutions. However, the research notes for this article do not include specific trust ranking data. The safest general statement is that larger institutions carry lower perceived risk due to their scale and regulatory oversight, while smaller lenders may offer better rates but require more due diligence from the saver.

Smaller banks pack a punch

Providers like Xceda Finance explicitly position themselves as alternatives to the big four, advertising better rates for secured term deposits. The data bears this out: Xceda’s 12-month rate of 4.25% substantially exceeds the ASB rate of 3.70%. For a $50,000 deposit locked for 12 months, that difference amounts to approximately $275 in additional annual interest — a meaningful gap for everyday savers.

Which bank has the highest fixed deposit rate now?

“Fixed deposit” is the term commonly used in New Zealand for what most providers call a “term deposit” — the product is identical. As of the most recently confirmed data, the highest available rate for a fixed/term deposit in New Zealand is 5.00% p.a., offered by Xceda Finance for a 5-year term.

Latest NZ rates

The New Zealand bank deposit interest rate averaged 3.46% nationally as of February 2026, according to The Global Economy. This means that providers offering above 4% are already meaningfully outperforming the market average. The confirmed rates showing 4% or above for fixed terms include Xceda Finance’s complete product range from 12 months upward, and several major bank products at the 3-year mark and beyond.

12 month term deposit rates NZ

The table below shows how the leading 12-month rates stack up against each other.

The implication: comparison-shopping pays, and the gap widens when you include non-bank providers. For investors willing to consider smaller or specialist lenders, Xceda Finance’s 4.25% stands 0.50 percentage points above the best major bank option.

Summary

New Zealand’s term deposit market in 2026 presents a clear fork in the road for savers. Major banks — ANZ, ASB, Westpac NZ, Kiwibank — offer the familiarity of established institutions with 12-month rates between 3.65% and 3.75%. Specialist lenders like Xceda Finance actively undercut those figures, with 4.25% for 12 months and 5.00% for five-year terms. The national average sits at 3.46%, meaning that deliberate comparison-shopping can yield rates more than a full percentage point above average. A New Zealand saver who chooses Xceda Finance over a major bank for a 12-month $50,000 deposit pockets roughly $275 extra in the first year alone — enough to make the extra research worthwhile.

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