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Fixed Interest Review: Listed Fixed Interest & Term Deposit Rates

With global wholesale interest rates on the move again we thought it would be advantageous for our investors to have a comparison between bank term deposits and the fixed interest investments available on the New Zealand debt market. Below is a list of just a few of the listed fixed interest investments available.

Fixed Interest Issues

Issuer

Code

Maturity Date

Yield

Cooperative Bank

COO010

28/07/2026

6.50%

Infratil

IFT230

15/06/2024

5.95%

ASB Bank

ABB050

 15/12/2026

5.30%

Kiwi Bank

KCF010

15/07/2024

5.19%

Infratil

IFT220

15/06/2021

5.15%

Precinct Properties

PCT010

 17/12/2021

5.15%

Bank of New Zealand

BNZ090

 17/12/2025

5.10%

Mercury Energy

MCY010

11/07/1944

5.10%

Westpac Bank

WBC010

 01/09/2026

5.10%

New Zealand Post

NZP010

 15/11/2039

5.05%

Infratil

IFT090

15/02/2020

5.00%

Z Energy

ZEL050

 01/11/2023

5.00%

Wellington Airport

WIA050

 16/06/2025

4.95%

Sky Television

SKT020

 31/03/2021

4.90%

Kiwi Property Group

KPG020

 07/09/2023

4.75%

Wellington Airport

WIA040

 05/08/2024

4.75%

Trustpower

TPW140

 15/12/2021

4.73%

Trustpower

TPW150

 15/12/2022

4.73%

ASB Bank

ABB030

 15/06/2024

4.70%

Infratil

IFT160

 15/06/2017

4.70%

Infratil

IFT200

 15/11/2019

4.70%

Infratil

IFT170

15/11/2017

4.65%

Spark Finance

SPF570

 07/09/2026

4.62%

Infratil

IFT180

 15/11/2018

4.60%

Z Energy

ZEL040

 01/11/2021

4.55%


As you can see there are some attractive rates available from some of New Zealand’s well known businesses. Below we have tabled the one, three and five year term deposits rates available from the major banks in New Zealand.

Term Deposits

Institution

12 Months

3 years

5 years

ANZ

3.35%

3.39%

4.20%

ASB

3.20%

4.00%

4.25%

BNZ

3.25%

4.00%

4.25%

Cooperative Bank

3.40%

3.60%

3.70%

Heartland Bank

3.40%

3.70%

3.80%

HSBC

3.00%

3.05%

3.15%

SBS Bank

3.65%

4.00%

 

TSB Bank

3.65%

4.05%

4.30%

Westpac

3.40%

3.80%

4.10%

There are several not so well known benefits to listed fixed interest over term deposits.

  • If you break a term deposit you may lose up to 3% of the accrued interest, with current rates that is nearly the entire return.
  • If you sell a fixed interest investment the maximum fee is only 1% and may be less depending on the size and type.
  • There is a 32 day stand down period before you can access your term deposit if you decide to break it.
  • A fixed interest investment, once sold, will have the funds in your account in three business days.
  • With recent changes to banking legislation it now means that if a bank gets into financial trouble they can use your term deposit to prop up the bank, meaning they are not as safe as they used to be.

With some attractive rates available, think of calling your financial adviser the next time your term deposit is due to roll over, or if you have just rolled one over talk to one of our advisers today to see if it would be in your best interest to review this investment.

Please note that some of the listed products are complex in nature and it is advised to speak with your financial adviser before making a decision to invest in any of the products listed above. Yields as at the 14/03/2017, subject to change.

 

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