Reference

NZ Term Deposit and Savings Rates 2026

Last updated: May 2026

~4.0%

12-Month TD (Main Banks)

2.25%

Official Cash Rate

Daily

Rate Movement

Indicative term deposit and savings rates across New Zealand banks. Deposit rates broadly track the Official Cash Rate (currently 2.25%), so they have fallen from their 2023 to 2024 highs. Rates change frequently and vary by bank, so use this as a guide and check a live comparison for exact current rates before investing.

Term Deposit Calculator Savings Calculator Compound Interest

Indicative Term Deposit Rates (Main Banks)

Term	Approx. rate (per annum)
3 months	~3.0 to 3.5%
6 months	~3.7 to 4.0%
12 months	~3.8 to 4.0%
18 months to 5 years	~3.7 to 4.2%

Specialist banks such as Heartland, SBS and Rabobank often pay 0.25% to 0.75% more than the big four (ANZ, ASB, BNZ, Westpac, Kiwibank). The highest 12-month main-bank rate has recently sat around 4.00%.

Source: RBNZ - Term deposit interest rates and interest.co.nz - Term deposits. Rates change daily; confirm before investing.

Tax on Interest (RWT and PIE)

Item	Detail
Resident Withholding Tax (RWT)	Deducted at your chosen rate (10.5%, 17.5%, 30%, 33% or 39%) to match your income tax rate
PIE term deposits	Taxed at your Prescribed Investor Rate (PIR), capped at 28%, which can beat RWT for higher earners
After-tax return	A 4.0% rate taxed at 33% leaves about 2.68% after tax, before inflation

For higher earners, a PIE term deposit taxed at the 28% PIR can give a better after-tax return than a standard deposit taxed at 33% or 39% RWT. To see what a rate is really worth after tax and inflation, use our real return tool.

Source: RBNZ. See also our NZ Interest Rates and NZ Tax Rates references.

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