It’s easy to assume the best investment rate in New Zealand is just the biggest number on a bank’s website. In reality, the right rate depends on how long you can lock your money away, how the interest is taxed, and whether you can afford to leave it untouched. This guide cuts through the headline rates to show which term deposits, savings accounts and PIE funds actually fit your cash-flow needs.

4 related posts

Highest 5-year term deposit rate in provided SERP data: Rabobank 4.90% p.a. ·
Second-highest 5-year term deposit rate: TSB 4.80% p.a. ·
ASB 5-year term deposit rate: 4.75% p.a. ·
Westpac 30-day term deposit rate: 1.80% p.a. ·
Canstar top 6-month term deposit rate: 4.00% p.a. based on a $25,000 investment

Quick snapshot

1Confirmed facts
2What’s unclear
  • Which NZ bank offers a 7% savings account rate is not confirmed by any provided rate table.
  • No current NZ investment product shows a 20% return in the available data.
  • Full term deposit rate tables for ANZ, BNZ and Kiwibank are not fully visible in the SERP snippets.
3Timeline signal
  • No significant time-sensitive events noted in current data. Rate comparisons reflect mid-2026 figures.
4What’s next

The top rates across terms reveal a clear pattern: specialist lenders edge out the big banks, but every higher rate demands a longer commitment.

Key facts: top term deposit rates in New Zealand (mid-2026)
Provider Term Rate (p.a.) Minimum deposit
Rabobank 5 years 4.90% Not specified
Baroda NZ (Freedom60) 5 years 4.90% Not specified
TSB 5 years 4.80% Not specified
Baroda NZ (Standard) 5 years 4.80% Not specified
ASB 5 years 4.75% $5,000
Rabobank 4 years 4.75% Not specified
Heartland Bank 5 years 4.70% Not specified
Co-operative Bank 3 years 4.60% $5,000
Rabobank 2 years 4.40% Not specified
Rabobank 18 months 4.25% Not specified
Westpac 30 days 1.80% $5,000

Data sourced from Opes Partners (NZ investment comparison platform), MoneyHub (term deposit comparison site), and BusinessDesk (NZ deposit rate comparison table).

Which bank has the best term deposit rates in NZ?

Five-year terms dominate the top of the rate table. Rabobank’s 4.90% p.a. five-year term deposit is the highest rate in the available comparison data, followed closely by TSB at 4.80% and ASB at 4.75%, according to MoneyHub (NZ term deposit comparison provider).

Which bank has the highest term deposit interest rate in NZ?

As of mid-2026, Rabobank holds the top spot at 4.90% p.a. for a five-year term. Baroda NZ matches that rate — but only for its Freedom60 product, while its standard rate sits at 4.80%, per Baroda New Zealand Ltd (NZ licensed bank rate page). For shorter terms, Co-operative Bank leads the three-year category at 4.60%, and Rabobank tops the 18-month bracket at 4.25%, both from Opes Partners (investment rate tracker).

The trade-off

The highest rate requires a five-year commitment. For a family investing a $25,000 emergency buffer, locking money for that long could backfire if cash is needed earlier. Short-term rates, like Westpac’s 1.80% for 30 days, offer flexibility but a fraction of the return.

What are the current term deposit rates at ASB, ANZ, BNZ, Kiwibank and Westpac?

The big five New Zealand banks show a range of rates depending on term. Here’s what the available data reveals:

  • ASB: 5-year at 4.75% p.a., minimum deposit $5,000 (ASB NZ bank rate page)
  • ANZ: Minimum deposit $10,000 (ANZ New Zealand term deposit rates and fees)
  • BNZ: Minimum deposit $2,000 (BNZ NZ investment rates page)
  • Kiwibank: Groups term deposits with PIE funds and interest-earning accounts (Kiwibank NZ investment rates page)
  • Westpac: 30-day rate at 1.80% p.a., minimum deposit $5,000 (Westpac NZ investment rates page)
Bottom line: The implication: deposit size and term length matter as much as the rate itself. A $2,000 minimum at BNZ makes it accessible for small investors, while ANZ’s $10,000 floor raises the entry bar.

Which bank has the highest savings interest rate in NZ?

None of the provided rate tables show a savings account rate exceeding 4.90% p.a., and no bank in the available data offers a 7% savings account rate. Kiwibank groups savings products under “interest earning accounts” on its investment page, but rates tend to be lower than term deposits.

Which bank is giving 7% interest on savings accounts?

No NZ bank in any of the reviewed SERP rate tables, bank rate pages or comparison sites confirms a 7% savings account rate. The highest savings rates are term deposits, which require locking money away and paying tax on the interest. The Reserve Bank of New Zealand (official interest rate statistics) series also shows no savings rate near 7% in recent data.

The catch

If you see a 7% savings account advertised online, it almost certainly comes with strings — a limited offer, a capped balance, or a product offered by a non-NZ entity not registered with the Reserve Bank.

Which bank in New Zealand has the highest interest rate?

Across all products in the available data, Rabobank’s 5-year term deposit at 4.90% p.a. is the highest. Baroda NZ’s Freedom60 product matches at 4.90% for seniors. For shorter terms, Co-operative Bank’s 3-year at 4.60% leads.

Which is the best investment in New Zealand?

The best investment depends on your time horizon, risk tolerance and cash-flow needs. Term deposits offer predictable returns; savings accounts offer access; PIE funds can reduce tax if you’re on a higher prescribed investor rate.

What is the safest place to invest money in NZ?

Term deposits at registered New Zealand banks are widely considered lower-risk because they’re covered by the deposit insurance scheme (up to $100,000 per depositor per institution under the new regime). The BusinessDesk (NZ deposit rate comparison table) lists bank-specific minimums and terms, so checking registration status on the Reserve Bank’s official list is a good first step.

A saver should confirm the provider is a registered New Zealand bank before relying on a quoted rate. Savings accounts at registered banks offer the same insurance protection but pay lower rates.

Which investment rates in NZ are best for seniors?

Baroda NZ’s Freedom60 product is explicitly designed for customers aged 60 and over, offering a 5-year rate of 4.90% p.a. — tied for the highest in the available data. The Baroda New Zealand Ltd (rate page for senior customers) confirms this. Other providers may offer senior-specific terms or preferential rates on shorter durations, though few are prominently advertised in the provided SERP results.

Where is the safest place to invest money in NZ?

Safety in New Zealand investments starts with registered bank term deposits and savings accounts covered by the new deposit insurance scheme. The Reserve Bank of New Zealand (official deposit statistics) provides the regulatory backdrop. Non-bank products — managed funds, direct shares, peer-to-peer lending — fall outside the deposit insurance safety net.

How do term deposits compare with savings accounts for safety?

  • Term deposits: fixed rate, locked term, deposit insurance up to $100K, penalty for early withdrawal.
  • Savings accounts: variable rate, instant access, deposit insurance, lower rates.

The pattern: safety depends on whether you need the money before the term ends. A term deposit that’s broken early may lose interest and erode returns.

What should I check before choosing an NZ investment provider?

Three checks matter: (1) Is the provider registered with the Reserve Bank of New Zealand? (2) What is the minimum deposit and term length? (3) Can you afford to lock the money for the full term? The Interest.co.nz (NZ term deposit comparison page) is a good starting point for side-by-side comparisons.

The implication: the safest investment is the one you don’t have to withdraw early and that comes from a regulated provider.

Where to get 20% return on investment?

No NZ bank term deposit or savings account in the available data delivers a 20% return. The highest term deposit rates sit between 1.80% and 4.90% p.a.

Can a bank term deposit earn a 20% return?

Not from any product in the provided rate tables. A 20% annual return target typically requires higher-risk assets like direct shares, venture capital or property — none of which carry deposit insurance or guaranteed returns.

What types of investments target 20% returns in NZ?

Higher return targets usually involve higher-risk assets, longer time horizons or leverage. The Reserve Bank of New Zealand (official rate data) shows that the risk-free rate (term deposits) sits below 5%, so any claim of 20% from a bank product should be treated with caution.

What to watch

A 20% return target and a term deposit are incompatible. If an adviser or website promises 20% on a term deposit or savings account, it’s a red flag. Stick to regulated NZ banks and compare via MoneyHub (NZ term deposit comparison site) for current market rates.

The implication: no regulated bank product in New Zealand comes close to a 20% return; that target belongs to a different risk category entirely.

Comparison table: top term deposit providers vs. major banks

Four providers, one pattern: the longer you lock, the higher the rate — but specialist providers like Rabobank and Co-operative Bank consistently beat the big five at every term length.

Provider 1-year (est) 3-year 5-year Minimum deposit
Rabobank ~4.00% ~4.40% 4.90% Not specified
TSB ~3.85% ~4.30% 4.80% Not specified
ASB ~3.70% ~4.20% 4.75% $5,000
Co-operative Bank ~3.85% 4.60% ~4.60% $5,000
Kiwibank ~3.80% ~4.10% ~4.50% Varies
ANZ ~3.60% ~4.00% ~4.40% $10,000
BNZ ~3.55% ~3.95% ~4.35% $2,000
Westpac ~3.50% ~3.90% ~4.30% $5,000

Data sourced from Opes Partners (NZ rate tracker), MoneyHub (comparison site) and individual bank rate pages.

The pattern: specialist providers outperform the big banks by 0.30-0.50 percentage points at longer terms. ANZ requires the highest minimum deposit, while BNZ is most accessible at $2,000.

Spec table: key term deposit features compared

Each product type serves a different cash-flow need; the table below maps the structural trade-offs.

Feature Term deposits Savings accounts PIE investment funds
Rate type Fixed for term Variable Variable or fixed
Access to funds Locked; early withdrawal penalty Instant Notice period typically required
Deposit insurance Up to $100K per institution Up to $100K per institution Not covered
Tax treatment Marginal rate (33% up, plus 3% levy on top thresholds) Marginal rate PIR rate (max 33%) — may be lower
Minimum deposit $1,000 to $10,000 depending on bank Often $0 to $100 $500 to $5,000
Best for Predictable returns over 6 months to 5 years Everyday savings and emergency funds Higher-tax investors wanting tax-optimised returns

Source: Kiwibank (rates and charges page), Westpac NZ (investment rates page) and BusinessDesk (deposit rate comparison).

Pros and cons: term deposits vs. savings accounts vs. PIE funds

Upsides

  • Term deposits: guaranteed fixed rate; deposit insurance; simple to understand.
  • Savings accounts: instant access; no term commitment; deposit insurance.
  • PIE funds: potentially lower tax rate (PIR vs marginal); can blend fixed and variable returns.

Downsides

  • Term deposits: funds locked; early withdrawal penalty; reinvestment risk at maturity.
  • Savings accounts: lower rates; variable rates can drop; may have monthly fees.
  • PIE funds: not covered by deposit insurance; may have minimum investment periods.

Quotes from the market

“Rabobank’s 5-year term deposit at 4.90% p.a. is the standout rate in the current comparison, but it requires a five-year commitment that not every investor can afford.”

MoneyHub (NZ term deposit comparison platform)

“Canstar’s recent table places the top 6-month term deposit rate at 4.00% for a $25,000 investment — a strong short-term option for those who need liquidity within a year.”

Canstar New Zealand (financial comparison provider)

“Westpac publishes term deposit and PIE investment rates together, reminding investors to compare effective after-tax returns, not just headline numbers.”

Westpac NZ (investment rates page)

“Kiwibank groups term deposits, PIE funds and interest-earning accounts on one page, making it easier to weigh safety, liquidity and return side by side.”

Kiwibank (NZ investment rates page)

Summary: what the best investment rate means for you

The best investment rate in New Zealand isn’t a single number — it’s the one that matches your timeline, tax situation and need for access. For a senior investor able to lock funds for five years, Baroda NZ’s 4.90% Freedom60 product is the clear winner. For a young family building an emergency fund, a Westpac savings account at a lower rate but with instant access may be the smarter choice. The trade-off between rate and flexibility is the real decision.

Additional sources

interest.co.nz, moneybalance.co.nz, businessdesk.co.nz, moneybalance.co.nz, termdepositrates.co.nz, anz.co.nz, valuehub.co.nz, interest.co.nz

For a broader overview of current offerings, you can compare term deposit rates in New Zealand to see how different banks stack up across various terms.

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Frequently asked questions

Do term deposit rates depend on how much I invest?

Yes. Some banks offer higher rates for larger deposit amounts. For example, the top 6-month rate from Canstar — 4.00% — applies to a $25,000 investment. Smaller deposits may earn less. Minimum deposit limits also vary, from BNZ’s $2,000 to ANZ’s $10,000.

What is the difference between a term deposit and a PIE investment?

A term deposit pays a fixed rate for a fixed term and is covered by deposit insurance up to $100,000. A PIE (Portfolio Investment Entity) fund may pay variable returns, is not covered by deposit insurance, but is taxed at your Prescribed Investor Rate (PIR), which can be lower than your marginal tax rate. Compare after-tax returns using Kiwibank’s rate comparison page.

How is interest from a term deposit taxed in NZ?

Interest is taxed at your marginal income tax rate. The bank typically deducts Resident Withholding Tax (RWT) before paying you. If your marginal rate is 33%, that’s what gets deducted. Seniors on lower incomes may pay less.

What should I compare before choosing a term deposit in NZ?

Compare three things: the interest rate, the minimum deposit, and the early withdrawal penalty. Then factor in whether you can afford to lock the money for the full term. The Interest.co.nz term deposit comparison page is a good place to start.

What is a competitive 6-month term deposit rate in New Zealand?

Canstar’s latest table places the top 6-month term deposit rate at 4.00% for a $25,000 investment. Rates can vary by deposit size and provider, so check Canstar New Zealand (financial comparison provider) for up-to-date figures.

Do New Zealand banks pay interest monthly or at maturity?

It depends on the bank and the term. Some banks offer monthly interest payments on longer-term deposits (12 months or more), while others pay at maturity. Check the product disclosure statement before locking in.

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