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Is now the time for Savers?
13 July 2017
Is now the time for
Savers?
As everyone has been keeping an eye on the Official Cash Rate and residential mortgage rates, savings rates have been quietly experiencing something of a revival after a period of inertia.
Canstar general manager, Jose George explains:
“As banks continue to increase their focus on the domestic market to raise funds, we’re seeing a growth in savings and term deposit interest rates. In particular the shorter term deposit rates, up to periods of two years, are now at levels we’ve not seen since mid-2015.
Canstar’s latest data suggests that the current average rate on a six month term deposit is 3.37%p.a. According to RBNZ, the last time this average rate was at or exceeded this level was in September 2015 (3.44%p.a).
Rate increases since 1 Jan 2017
Minimum rates available on savings accounts have not dropped since the start of the year, yet over the same period, maximum rates have increased across the board. Term deposits have experienced the largest change with rises of up to 65 basis points.
George continues:
“There’s been a lot more stability in the savings market than we’ve seen in the mortgage market. With a renewed focus on raising funds at a domestic level, banks now vying for the attention of savers and rates are steadily creeping up. Good news for consumers.”
Term deposit Interest
rates When you’re not
saving… In order to save money, you need to be
able to manage it. Debit cards, credit cards, Eftpos,
online and mobile banking are now all familiar financial
tools we use on a daily basis and the financial sector’s
proactive approach to innovation and technology see the
landscape frequently changing and improving . “Everyday
banking in New Zealand is enormously different to what it
was say ten or even five years ago” says George.
“Innovation is pushing the boundaries in the financial
sector with transactional banking at the forefront of
change. Consumer attitudes have also shifted with people
expecting value from their everyday banking, as we no longer
view it simply as a financial administration tool. Our
advice to consumers is to use whatever is available to
manage your budget and look at ways to gain additional value
from your money. Everyday banking is no longer a
‘one-size-fits-all’ scenario” concludes
George Top rated provider -
Savings Canstar recently reviewed the savings
landscape in New Zealand to evaluate which provider offers
savers the most comprehensive and well performing suite of
products and services. We are delighted to announce ASB as
Bank of the Year - Savings. Accepting the award, ASB
general manager product and strategy Glen Martin
said: “ASB is delighted to accept Canstar’s award for
Bank of the Year – Savings. At ASB, we aim to provide
unbeatable customer experiences so our customers are one
step ahead.”
Top rated provider – Everyday
banking Canstar also conducted a review of the
everyday banking in New Zealand, evaluating the level and
variety of products, services and tools available to
customers. For 2017, we are delighted to recognise Westpac
as Bank of the Year - Everyday Banking. Accepting the
Award on behalf of Westpac, Shane Howell, chief product
officer said: “With growing numbers of customers
choosing to bank online, not only funds but money management
tools and functionality need to be available ‘on the
go’. Our continuing development of the Westpac CashNav
money management app, our Westpac One online banking
functionality and our network of over 160 Smart ATMs, means
our customers can design a style of everyday banking that
suits them. We put huge focus on our everyday banking
services and are thrilled to have our efforts recognised by
Canstar.”
For further information on the Everyday Banking Award,
please click here. For the Savings
Award, please click
here. ENDS>
01 Jan
2017 30 June
2017
Term Min Max Average Min Max Average
180
days 2.80 3.60 3.33 2.80 4.25 3.37
270
days 2.80 3.75 3.47 2.80 4.25 3.50
1
year 2.90 3.80 3.41 2.90 4.25 3.45
2
year 2.90 3.85 3.60 2.90 4.25 3.79
Source:canstar.co.nz. Interest rates are per
annum, based on available balance of $25,000
Winner Award
Winner Award
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