Compare Fixed-Rate Deposits in New Zealand

Live offers

19 live offers compared from 19 providers, from 2.50% gross. Updated daily.

What are term deposits in New Zealand?

A term deposit (often called a fixed deposit) locks a lump sum away with a bank for a set period — from a few months to five years — in exchange for a fixed interest rate agreed up front. Because the rate is guaranteed and the capital is not exposed to markets, term deposits are one of the most popular low-risk savings tools in New Zealand, especially for retirees and anyone wanting certain returns. The trade-off is access: your money is committed for the term, and breaking early usually means a reduced rate.

How the New Zealand market works

All the main banks — ANZ, ASB, BNZ, Westpac and Kiwibank — plus smaller and non-bank players like TSB, SBS Bank and Heartland Bank compete for term-deposit money. Rates move with the Reserve Bank of New Zealand's Official Cash Rate: when the OCR rises, deposit rates follow, and vice versa. Non-bank deposit takers and challenger banks such as Heartland often post the sharpest rates to attract funds. Interest can typically be paid at maturity, or periodically (monthly, quarterly or annually) if you want regular income.

Benefits

Guaranteed return — The rate is fixed for the whole term, so you know exactly what you will earn.

Capital certainty — Unlike shares or managed funds, your principal doesn't fall with markets.

Income options — Choose interest at maturity to compound, or regular payments for steady cashflow.

Depositor protection — Eligible term deposits are covered by the Depositor Compensation Scheme up to NZ 00,000 per institution.

How to choose

Match the term to when you will need the money — locking in longer usually earns more but reduces flexibility. Compare rates across banks and non-bank deposit takers, remembering that the headline rate is annual, so shorter terms pay proportionally less. Consider laddering: splitting your money across several maturities so a portion frees up regularly while you still capture longer-term rates. Check the early-withdrawal terms and notice period, and factor in resident withholding tax, which the bank deducts from your interest at your nominated rate.

Leading providers in New Zealand

ANZ, ASB, BNZ, Westpac and Kiwibank offer the reassurance of the largest, most strongly rated banks, though their rates can trail the market. Heartland Bank is a consistent leader on posted term-deposit rates and a popular choice for rate-seekers. SBS Bank and TSB, both New Zealand-owned, are competitive mid-market options. Rates across the market currently span roughly 2.5% to 5.5% depending on the term and provider, with the best returns usually on terms of around one year or longer and from challenger institutions.

What it costs

Term deposits don't carry account fees — the "cost" is opportunity and access. Current New Zealand rates range from about 2.5% on shorter terms up to around 5.5% on the most competitive longer terms. Interest is taxable: resident withholding tax is deducted at your chosen rate, so your after-tax return is lower than the headline figure. Breaking a term early typically triggers a rate reduction (and sometimes a break fee), so only commit money you are confident you can leave untouched for the full period.

Protections and regulation

Registered banks are prudentially supervised by the Reserve Bank of New Zealand, and non-bank deposit takers are also RBNZ-regulated under their own regime, with credit ratings they must disclose. Since mid-2025, eligible term deposits are protected by the Depositor Compensation Scheme up to NZ 00,000 per depositor per institution. Providers must be registered financial service providers, comply with the Fair Trading Act, and belong to a dispute-resolution scheme. Always check a non-bank issuer's credit rating before committing funds for a higher rate.

Common questions

Can I get my money out early? — Usually yes, but with reduced interest and after a notice period, so term deposits suit money you can lock away.

Are term deposits protected? — Eligible deposits are covered up to NZ 00,000 per depositor per institution under the Depositor Compensation Scheme.

How is the interest taxed? — Resident withholding tax is deducted at your nominated rate, so compare after-tax returns.

Fixed-Rate Deposits in New Zealand — FAQ