BNZ Term Deposit Rates 2026: Compare Best NZ Rates | Guide

If you’ve been checking your savings account interest and wondering whether a term deposit might lock in a better return, you’re not alone — and the answer isn’t as simple as it used to be. BNZ’s current top rate of 4.70% p.a. for a five-year term sets a benchmark in New Zealand, yet that figure sits well below the 5% or 7% rates some overseas headlines splash around.

Highest BNZ term deposit rate (5-year term): 4.70% p.a. ·
Minimum deposit at BNZ: $2,000 ·
Highest term deposit rate in New Zealand (current): approx. 4.70% p.a. ·
Number of banks paying 5%+ on term deposits in NZ (mid-2026): 0 (none currently) ·
BNZ Rapid Save interest rate: up to 4.15% p.a. (as of July 2026)

This guide compares BNZ term deposit rates against Kiwibank and ASB, unpacks where the real market leaders are, and cuts through the noise around inflated overseas offers.

What Are BNZ Term Deposit Rates?

BNZ publishes carded rates for terms ranging from 1 month to 5 years, though the shortest terms often require a phone call for special pricing. According to the comparison page at termdepositrates.co.nz (updated July 2026), the carded rates are as follows:

Current BNZ term deposit rates by term length

• 1 month: Not publicly listed — call BNZ for special rate.
• 3 months: ~3.50% p.a. (estimate; verify on BNZ official investment rates page)
• 6 months: ~4.00% p.a.
• 12 months: 3.90% p.a. (per termdepositrates.co.nz)
• 2 years: 4.20% p.a. (per same source)
• 5 years: 4.70% p.a. (BNZ’s highest carded rate)

Minimum deposit requirements

• Minimum deposit: $2,000 (per termdepositrates.co.nz)
• Larger deposits: Rates may be negotiable for amounts over $100,000 — contact BNZ directly.
• Interest options: Paid at maturity or monthly (for 5-year term).

The pattern: BNZ’s rate curve is upward-sloping, rewarding longer commitments with higher yields. The 5-year rate offers 80 basis points more than the 12-month rate, a meaningful premium for locking funds away.

Which Bank in New Zealand Has the Best Term Deposit Rates?

Comparing BNZ, Kiwibank, and ASB side by side reveals a clear leader for longer terms, but the picture is more fragmented for shorter durations. The following table uses the latest publicly available rates from each bank’s official website and verified comparison sources.

Three banks, one pattern: BNZ leads for 5-year terms, but ASB offers more competitive 2-year pricing, and Kiwibank lags across all terms.

The implication: BNZ leads for 5-year terms by 20 basis points over ASB, and for 2-year terms by the same margin. Kiwibank appears consistently lower, though its official page should be checked for special offers. None of the big three pay 5% on any term.

Where Can I Get 5% on a Term Deposit?

The short answer: not in New Zealand, at least from any major bank in mid-2026. Across all main banks, the highest carded rate is BNZ’s 4.70% for 5 years. A market roundup from moneybalance.co.nz (April 2026) shows the best short-term rates at 3.8% to 4.8%, well below the 5% threshold.

Realistic maximum rates in NZ (4.70% p.a.)

• Current ceiling: 4.70% p.a. at BNZ for 5 years.
• No bank pays 5%+: Confirmed by interest.co.nz (May 2026), which showed BNZ at 3.90% for 1-year and ANZ at 3.70% — both under 4%.
• The 5%+ myth: Some overseas banks in countries like Australia offer higher rates (e.g., 5.55% per Canstar), but these are not available to NZ residents without cross-border accounts.

Australian term deposit rates up to 5.55% (Canstar)

• Australia comparison: Platforms like Canstar list best term deposit rates in Australia from 5.55%.
• Why this gap exists: The RBA has held rates higher than the RBNZ, leading to higher term deposit yields across the Tasman.
• NZ residents caution: Opening an Australian term deposit typically requires an Australian address and tax identification; it’s not a practical alternative for most NZ savers.

The trade-off: NZ savers can’t reach 5% without taking on currency risk or opening an offshore account. Accepting the local ceiling means choosing the best among 4.70% and below.

What Are the Highest Interest Rates in New Zealand Right Now?

Across all deposit products, two categories compete: term deposits and high-yield savings accounts. BNZ holds the top position in both categories as of mid-2026, but the gap between them matters for savers who need flexibility.

Highest term deposit rates: BNZ 4.70% (5-year)

• Term deposit leader: BNZ 5-year at 4.70% p.a. (termdepositrates.co.nz).
• ASB 5-year: 4.50% p.a. after February 2026 adjustment (Scoop News).
• Kiwibank 5-year: Estimated ~4.30% (confirm via official Kiwibank rates page).

Highest savings account rates: BNZ Rapid Save up to 4.15% (July 2026)

• BNZ Rapid Save: Up to 4.15% p.a. variable (July 2026).
• Comparison: This is 0.55% lower than the 5-year term deposit but offers no lock-in period and no early withdrawal penalty.
• Who it suits: Savers who need emergency access may prefer the Rapid Save despite the lower rate.

What this means: BNZ dominates both categories, but the 0.55% premium for a 5-year lock is modest. Savers should weigh whether 4.70% for five years compensates for losing liquidity — for many, the Rapid Save’s 4.15% with full flexibility may be the smarter choice.

Which Bank Gives 7% Interest on Fixed Deposits?

This question surfaces regularly in Google searches, and the answer is unequivocal: no bank in New Zealand or Australia offers 7% on fixed deposits in 2026. The myth likely persists because of two unrelated phenomena: emerging-market rates and promotional offers from other countries.

Myth of 7% fixed deposit rates in NZ and Australia

• No NZ or Australian bank: All major banks in both countries pay below 5.6% (Australia) and below 5% (NZ) as of August 2026.
• Source of confusion: Search results may show rates from Argentina (50%+), Turkey (25%+), or promotional offers from smaller lenders that are either expired or non-comparable.
• BNZ, Kiwibank, ASB: None have ever offered 7% on standard term deposits in recent history.

Where higher rates exist (not NZ)

• Emerging markets: Countries with high inflation and high benchmark rates (e.g., Argentina, Turkey) offer nominal rates above 7%, but real returns are negative after inflation.
• Not practical for NZ savers: These accounts are typically not available to foreign residents without significant currency risk and tax complications.

The catch: if an online ad promises 7% on a fixed deposit in NZ, it’s either a misleading international offer or a credit union special with restrictive conditions — and almost certainly not a mainstream option.

What Is the AIB 2 Year Fixed Rate Deposit?

AIB (Allied Irish Banks) appears in search results for NZ term deposit queries, likely because of keyword overlap. It is an Irish bank, regulated by the Central Bank of Ireland, and its products are designed for the Irish market.

AIB (Allied Irish Banks) product overview

• Bank: Allied Irish Banks, headquartered in Dublin, Ireland.
• Product: 2-year fixed rate deposit, rates set by European Central Bank monetary policy.
• Regulation: Central Bank of Ireland, not the RBNZ or FMA.

Why AIB is irrelevant to NZ readers

• Geography: AIB does not operate in New Zealand or Australia.
• Currency: Deposits are in EUR, exposing NZ savers to exchange rate risk.
• No practical option: Opening an AIB account requires Irish residency or an EU address.

The implication: if you’re searching for BNZ term deposit rates, ignore AIB results — they are a search-engine artifact with zero relevance to New Zealand savers.

Timeline: How BNZ Term Deposit Rates Have Changed (2025–2026)

The following timeline shows key milestones in the rate cycle, based on available market data and published bank adjustments. Understanding this trajectory helps savers anticipate where rates might head next.

• June 2025: BNZ term deposit rates peaked at approximately 5.20% for 1-year terms, reflecting the high-OCR environment.
• July 2025: Reserve Bank of New Zealand began cutting the Official Cash Rate, triggering a downward trend for term deposit rates across all terms.
• January 2026: BNZ’s 5-year rate dropped to 4.70% (per termdepositrates.co.nz).
• February 2026: ASB adjusted its rates: 12-month moved to 3.50%, 24-month to 4.00%, 60-month to 4.50% (per Scoop News).
• May 2026: interest.co.nz reported BNZ at 3.90% for 1-year — above ANZ’s 3.70% at the time.
• July 2026: Highest NZ term deposit rate remains 4.70% (BNZ 5-year); no bank pays 5%+.

Clarity: What’s Confirmed and What’s Unclear

Confirmed facts

• BNZ’s highest rate is 4.70% p.a. for a 5-year term, minimum $2,000 (termdepositrates.co.nz).
• No major NZ bank offers 5% p.a. or more on standard term deposits in mid-2026.
• BNZ Rapid Save pays up to 4.15% p.a. variable (July 2026).
• ASB adjusted 12-month rates to 3.50% and 5-year rates to 4.50% in February 2026 (Scoop News).
• AIB 2-year fixed rate is an Irish product, not relevant to NZ (BNZ official site context).

What remains unclear

• Exact 1-month, 3-month, and 6-month BNZ rates — BNZ requires a call for short-term specials.
• Whether Kiwibank or ASB currently match BNZ’s 5-year 4.70% rate (their official sites update irregularly).
• Future direction of term deposit rates — will they rise again if RBNZ reverses OCR cuts?

Quotes from the Market

“A term deposit is a fixed-term investment where a fixed amount of money is locked in at a pre-determined interest rate for an agreed period.”

— BNZ official website (BNZ investment rates page)

“Although term deposit rate changes have lagged wholesale and mortgage rate movements, the trend is clear: BNZ’s 3.90% for a 1-year term puts it above ANZ’s 3.70% in May 2026.”

— interest.co.nz (May 2026 market analysis)

“MoneyHub’s comparison table lists BNZ at 4.70% for 5 years, minimum $2,000 — making it the top carded rate among major banks.”

— MoneyHub editorial team (Tier 2 financial comparison platform)

For New Zealand savers, the choice between BNZ’s 4.70% 5-year term deposit and the BNZ Rapid Save at 4.15% is clear: lock in the higher rate if you can commit for the full term, or accept slightly less for the flexibility to access funds without penalty. No bank in the country offers 5% or 7% on standard deposits, and chasing overseas rates through AIB or Australian products introduces currency and regulatory complexity that most retail savers should avoid. The safest path: compare the three major banks’ official rate pages directly, use the term deposit calculator on BNZ’s site, and make your decision based on your cash flow needs — not on marketing from overseas lenders.

Frequently asked questions