Billions up for grabs as term deposits expected to peak

RBNZ figures show household term deposits went from under $100 billion to over $160b between May 2022 and July 2025. (Image: Mark Mitchell)

Gregor Thompson

Thu, 25 Sep 2025

With term deposit balances expected to be nearing their peak, attention is shifting to where billions of dollars could flow next. Former ANZ chief economist Cameron Bagrie is one of several market analysts who told BusinessDesk that expansionary monetary policy was already shifting incentives away from fixed-term bank deposits (TDs). The typical reaction to lower interest rates, he said, was that capital flows out of TDs and into saving accounts, property and equities. Reserve Bank of New Zealand (RBNZ) figures show household ter...

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