Quick Answer
Best NZ term deposit rate (August 2026): ICBC at 3.80% (9 months, NZ$10K minimum). Among the Big 5: Westpac leads at 3.70% (9 months), ANZ at 3.65%. Rabobank offers 3.65% with just NZ$1,000 minimum. All covered by DCS up to NZ$100,000 per institution. Use our FD calculator to see exact returns for your amount.
What's Inside
1. All NZ Term Deposit Rates (August 2026)
Every major New Zealand bank's term deposit rates as of August 2026. Sorted by 9-month rate (the sweet spot for most savers — long enough for a good rate, short enough for flexibility):
| Bank | Rating | 3 Months | 6 Months | 9 Months | Min Deposit |
|---|---|---|---|---|---|
| ICBC (NZ) | A | 3.25% | 3.70% | 3.80% | NZ$10,000 |
| Westpac | AA- | 2.85% | 3.45% | 3.70% | NZ$5,000 |
| Bank of China | A | 3.20% | 3.65% | 3.70% | NZ$100,000 |
| Co-operative Bank | BBB+ | 2.90% | 3.55% | 3.70% | NZ$2,000 |
| ANZ | AA- | 2.90% | 3.55% | 3.65% | NZ$10,000 |
| Rabobank | A | 3.10% | 3.65% | 3.65% | NZ$1,000 |
| BNZ | AA- | 2.85% | 3.45% | 3.60% | NZ$2,000 |
| ASB | AA- | 3.00% | 3.45% | 3.55% | NZ$5,000 |
| Kiwibank | A1 | 3.05% | 3.45% | 3.55% | NZ$1,000 |
| SBS Bank | BBB+ | 3.00% | 3.45% | 3.60% | NZ$1,000 |
| TSB Bank | BBB+ | 3.00% | 3.45% | 3.50% | NZ$1,000 |
| Heartland Bank | BBB | 2.90% | 3.40% | 3.50% | NZ$1,000 |
2. NZ$50,000 Deposit — Bank-by-Bank Returns (9 Months)
Here's exactly how much you earn on a NZ$50,000 term deposit for 9 months at each bank:
| Bank | Rate (9mo) | Interest Earned | Maturity Value | vs Heartland |
|---|---|---|---|---|
| ICBC | 3.80% | NZ$1,425 | NZ$51,425 | +NZ$113 |
| Westpac | 3.70% | NZ$1,388 | NZ$51,388 | +NZ$75 |
| Co-operative Bank | 3.70% | NZ$1,388 | NZ$51,388 | +NZ$75 |
| ANZ | 3.65% | NZ$1,369 | NZ$51,369 | +NZ$56 |
| Rabobank | 3.65% | NZ$1,369 | NZ$51,369 | +NZ$56 |
| BNZ | 3.60% | NZ$1,350 | NZ$51,350 | +NZ$38 |
| ASB / Kiwibank | 3.55% | NZ$1,331 | NZ$51,331 | +NZ$19 |
| Heartland | 3.50% | NZ$1,313 | NZ$51,313 | — |
3. Big 5 Banks: Head-to-Head
Most Kiwis deposit with the Big 5 for convenience. Here's how they compare across all standard tenures:
| Bank | 3 Months | 6 Months | 9 Months | Min Deposit | Verdict |
|---|---|---|---|---|---|
| ANZ | 2.90% | 3.55% | 3.65% | NZ$10,000 | Best Big 5 overall |
| Westpac | 2.85% | 3.45% | 3.70% | NZ$5,000 | Best 9-month rate |
| BNZ | 2.85% | 3.45% | 3.60% | NZ$2,000 | Lowest minimum |
| ASB | 3.00% | 3.45% | 3.55% | NZ$5,000 | Best 3-month rate |
| Kiwibank | 3.05% | 3.45% | 3.55% | NZ$1,000 | Lowest min, NZ-owned |
4. Term Deposit vs Savings Accounts vs Kiwi Bonds
| Option | Rate | Lock-in | Minimum | Insurance | Best For |
|---|---|---|---|---|---|
| Term Deposit (ICBC) | 3.80% | 9 months | NZ$10,000 | DCS (NZ$100K) | Highest guaranteed rate |
| Term Deposit (ANZ) | 3.65% | 9 months | NZ$10,000 | DCS (NZ$100K) | Big bank security |
| Kiwi Bonds | 2.25% | 6 months | NZ$1,000 | NZ Government backed | Government guarantee (no DCS limit) |
| Savings account (conditional) | 1.5-4.5% | None | NZ$0 | DCS (NZ$100K) | Emergency fund, instant access |
| Notice Saver (32 days) | 3.0-3.4% | 32 days notice | NZ$2,000 | DCS (NZ$100K) | Near-instant but higher rate |
→ You can lock NZ$5K+ for 6-12 months (3.45-3.80% guaranteed)
→ You want a fixed, predictable return (savings rates can change anytime)
→ You're comparing against Kiwi Bonds (2.25%) — term deposits pay 1.2-1.5% more
When savings accounts win:
→ You need instant access to funds
→ You can meet bonus conditions (salary credit, card spending, etc.)
→ Your emergency fund — never lock emergency money in term deposits
5. Smart Strategy for NZ Deposits in 2026
Where Are NZ Rates Heading?
The RBNZ's Official Cash Rate (OCR) has been dropping through 2025-2026. As the OCR falls, term deposit rates follow with a short lag. Current rates (3.45-3.80%) are still attractive but may continue declining if the OCR drops further in H2 2026.
What to Do Now
- Lock in a 9-12 month term now — today's 3.65-3.80% rates may be 3.0-3.2% in 6 months if the OCR keeps falling
- Use a TD ladder — split NZ$100K into 4 deposits (3, 6, 9, 12 months). One matures each quarter. You never miss a rate rise AND you're protected against rate drops.
- Consider Rabobank or Kiwibank for flexibility — NZ$1,000 minimum means you can start small and add more deposits over time
- DCS coverage is NZ$100K per institution — if you have more than NZ$100K, split across ANZ + Westpac + Kiwibank for full coverage on NZ$300K
- PIE term deposits for tax efficiency — if your marginal tax rate is 33% or 39%, a PIE fund taxed at 28% gives you a higher after-tax return than a standard term deposit at the same rate
Tax on Term Deposit Interest in NZ
At 10.5% tax rate: NZ$1,369 gross → NZ$1,225 after tax
At 17.5% tax rate: NZ$1,369 gross → NZ$1,129 after tax
At 30% tax rate: NZ$1,369 gross → NZ$958 after tax
At 33% tax rate: NZ$1,369 gross → NZ$917 after tax
At 39% tax rate: NZ$1,369 gross → NZ$835 after tax
PIE alternative at 28% cap: NZ$1,369 gross → NZ$986 after tax (saves NZ$69-151 for high earners)
6. Calculate Your Exact NZ Term Deposit Returns
Plug in your deposit amount, rate, and tenure to see exact maturity value. Works with NZD and all other currencies.
🇳🇿 Calculate Your NZ Term Deposit Returns
Enter your amount and compare returns at different rates and tenures.
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Last Updated: August 5, 2026 | Author: CalcIQ Team
Disclaimer: Rates shown are based on publicly available data from interest.co.nz and bank websites as of August 2026. Rates change frequently. Always verify current rates directly with the institution. This is not financial advice. Depositor Compensation Scheme covers up to NZ$100,000 per depositor per licensed institution.