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...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Stay informed on business, government and financial developments across New Zealand.
Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market Close

NZ sharemarket up nearly 0.5%, third rise this week

The S&P/NZX 50 Index gained 56.99 points or 0.44% to 13,000.56.

Graham Skellern 16 Jan 2025

Property

Clarkes hand over 'certain items' to Du Val receivers

The failed property group's founders had until Wednesday to front up with the assets.

Maria Slade 16 Jan 2025

Clarkes hand over 'certain items' to Du Val receivers

Technology

China officials discuss option of TikTok sale to Elon Musk

Beijing’s leaders have denounced US ban threat

The Wall Street Journal 16 Jan 2025

China officials discuss option of TikTok sale to Elon Musk

Sponsored

Why Kiwis are embracing Bitcoin ETFs

The once hard-to-access investment option is becoming mainstream.

Smart

Sponsored

The AI tech revolutionising safety in high-risk NZ workplaces

Around forklifts and machinery, Viewtech detects danger instantly.

Viewtech

More Economy

Economy

Westpac records soft December retail spending

Despite a slight lift, Westpac data points to a soft end of year for household spending.Westpac’s retail tracker, released on Thursday, showed spending on Westpac-issued credit and debit cards was up 2% in December compared to last year. Westpac senior economist Satish Ranchhod...

Staff reporters 16 Jan 2025