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Is now the time for Savers?

13 July 2017

Is now the time for Savers?

As everyone has been keeping an eye on the Official Cash Rate and residential mortgage rates, savings rates have been quietly experiencing something of a revival after a period of inertia.

Canstar general manager, Jose George explains:

“As banks continue to increase their focus on the domestic market to raise funds, we’re seeing a growth in savings and term deposit interest rates. In particular the shorter term deposit rates, up to periods of two years, are now at levels we’ve not seen since mid-2015.

Canstar’s latest data suggests that the current average rate on a six month term deposit is 3.37%p.a. According to RBNZ, the last time this average rate was at or exceeded this level was in September 2015 (3.44%p.a).

Rate increases since 1 Jan 2017

Minimum rates available on savings accounts have not dropped since the start of the year, yet over the same period, maximum rates have increased across the board. Term deposits have experienced the largest change with rises of up to 65 basis points.

George continues:

“There’s been a lot more stability in the savings market than we’ve seen in the mortgage market. With a renewed focus on raising funds at a domestic level, banks now vying for the attention of savers and rates are steadily creeping up. Good news for consumers.”

Term deposit Interest rates

01 Jan 2017 30 June 2017
Term Min Max Average Min Max Average
180 days 2.80 3.60 3.33 2.80 4.25 3.37
270 days 2.80 3.75 3.47 2.80 4.25 3.50
1 year 2.90 3.80 3.41 2.90 4.25 3.45
2 year 2.90 3.85 3.60 2.90 4.25 3.79 Interest rates are per annum, based on available balance of $25,000

When you’re not saving…

In order to save money, you need to be able to manage it. Debit cards, credit cards, Eftpos, online and mobile banking are now all familiar financial tools we use on a daily basis and the financial sector’s proactive approach to innovation and technology see the landscape frequently changing and improving .

“Everyday banking in New Zealand is enormously different to what it was say ten or even five years ago” says George.

“Innovation is pushing the boundaries in the financial sector with transactional banking at the forefront of change. Consumer attitudes have also shifted with people expecting value from their everyday banking, as we no longer view it simply as a financial administration tool. Our advice to consumers is to use whatever is available to manage your budget and look at ways to gain additional value from your money. Everyday banking is no longer a ‘one-size-fits-all’ scenario” concludes George

Top rated provider - Savings

Canstar recently reviewed the savings landscape in New Zealand to evaluate which provider offers savers the most comprehensive and well performing suite of products and services. We are delighted to announce ASB as Bank of the Year - Savings.

Accepting the award, ASB general manager product and strategy Glen Martin said:

“ASB is delighted to accept Canstar’s award for Bank of the Year – Savings. At ASB, we aim to provide unbeatable customer experiences so our customers are one step ahead.”

Winner Award

Top rated provider – Everyday banking

Canstar also conducted a review of the everyday banking in New Zealand, evaluating the level and variety of products, services and tools available to customers. For 2017, we are delighted to recognise Westpac as Bank of the Year - Everyday Banking.

Accepting the Award on behalf of Westpac, Shane Howell, chief product officer said:

“With growing numbers of customers choosing to bank online, not only funds but money management tools and functionality need to be available ‘on the go’. Our continuing development of the Westpac CashNav money management app, our Westpac One online banking functionality and our network of over 160 Smart ATMs, means our customers can design a style of everyday banking that suits them. We put huge focus on our everyday banking services and are thrilled to have our efforts recognised by Canstar.”

Winner Award

For further information on the Everyday Banking Award, please click here. For the Savings Award, please click here.


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