Savers still running backwards in term deposits

Kiwibank chief economist Jarrod Kerr says term deposit holders have been "punished" by recent monetary policy settings. (Photo: Kiwibank)

Dan Brunskill

Thu, 09 Jun 2022

Term deposit rates are returning to their historical average as New Zealand’s central bank hikes the official cash rate, but savers are still falling behind high inflation.A term deposit is a fixed-term investment, usually offered by banks, where money is locked into an account for a set period. The bank uses the money to issue loans and pays the depositor interest until the end of the term.These simple and safe investments were once a staple tool for building wealth. Young people used them to save for a first home and older people used t...

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