Best Term Deposit Rates

Looking to invest your money in a term deposit? Here are some of the highest term deposit interest rates currently available on Canstar’s database.

It really is a wonder that there was a stock market crash here in the mid-1980s. If you look back at the term deposit rates offered at the time, you have to ask yourself why people bothered with risky equities.

Back in 1985 when, ironically, Dire Straits’ Money For Nothing was riding high in the charts, the average six-month term deposit rate was 17.93%. Yes, average mortgage rates were eye-watering – the floating rate at the time was 17.5% – but now the only investment likely to offer such large, short-term returns involves taking a punt on Bitcoin.

→ Related article: How to Buy Bitcoin in New Zealand

By June 1995, term deposit rates had fallen close to 10 percentage points, to 8.84%. And hand-in-hand with mortgage rates, they continued their decline. Until mid last year, when they started to climb back up again.

Average Six-month
Term Deposit
Average Two-year
Fixed Mortgage Rate
Mid 2000 6.65% 8.6%
Mid 2005 6.82% 7.6%
Mid 2010 4.71% 7.1%
Mid 2015 3.82% 5.6%
Mid 2020 1.67% 3.7%
Mid 2021 0.88% 3.5%
April 2022 2.13% 5.55%


Currently, when you factor in the inflation rate of 6.9%, choosing a term deposit can cost you money in the long term. However, if you’ve a lump sum that you need to park safely, a term deposit is still a handy tool to have in your investment portfolio. Especially when you consider that the highest rate in Canstar’s Term Deposit Comparison Tool is now 4%, offered by SBS Bank.

Our comparison tool evaluates over 470 term deposit rates from 14 providers, and is a great place to research the best rates in the market. However, for a quick rundown, we’ve put together a couple of easy-to-scan tables featuring the highest rates (as of 07/06/2022) on our database for 6-month, 12-month, and 24-month term deposits. Note: interest payment frequencies vary. Check Canstar’s comparison tables for full details.

Best term deposit rates: six-month term

The results based on an investment of $50,000 for 6 months.


6-month term deposit rate
RaboBank wins Canstar award 2.90%
Canstar Kiwibank logo 2.50%

SBS Bank 2.35%


bnz logo



westpac logo


Term deposit best rates: 12-month term

The results based on an investment of $50,000 for 12 months.
12-month term deposit rate
SBS Bank 4.0%
RaboBank wins Canstar award 3.50%


Canstar Kiwibank logo




bnz logo



westpac logo




Term deposit best rates: 24-month term

The results based on an investment of $50,000 for 24 months.
24-month term deposit rate
RaboBank wins Canstar award 3.85%


Canstar Kiwibank logo

SBS Bank 3.65%
bnz logo 3.60%


westpac logo 3.50%


To view a wider range of term deposit accounts, use Canstar’s Term Deposit Comparison Tool.

Term deposits: things to consider

While a high interest rate is important, it isn’t the only factor to consider when looking for a term deposit. Some other factors you might want to keep in mind include:

Fixed time period

Choose your time wisely, because term deposits can be inflexible. For example, if you need to access your money before the end of the term, your bank may charge you a penalty fee and ask you to give them a period of notice.

Interest rates

They tend to vary a lot, depending on the provider and the term. With movements in both directions possible, it pays to shop around.

Compound interest

Interest can be compounded at different frequencies, such as monthly, semi-annually and annually. The compounding frequency, the number of compounding periods and the interest rate will determine the amount of interest earned on a term deposit investment.

Often, you’ll receive less interest on accounts that pay interest more regularly, for example monthly, due to the added benefits of compound interest.

Deposit size

Check whether there is any minimum amount needed to open a term deposit, and if a higher interest rate is offered for a larger amounts. It may be worthwhile depositing more than you originally considered to achieve a better rate.

Fees and charges

Are there any penalties or fees charged for early withdrawals?

Rolling over

As rates are constantly moving, it’s important to be aware that if you roll over your account, you might be fixing at a lower (or higher) amount. Also be aware that sometime you can earn bonus interest if you agree to roll over your term deposit. So check with your provider to see what options you have, and what terms and conditions apply.

→ Related article: What is Compound Interest?

For the full rundown of all the up-to-date term deposit rates on Canstar’s database, just click on the button below.

Compare Term Deposits

About the author of this page

Bruce PitchersThis report was written by Canstar’s Editor, Bruce Pitchers. Bruce began his career writing about pop culture, and spent a decade in sports journalism. More recently, he’s applied his editing and writing skills to the world of finance and property. Prior to Canstar, he worked as a freelancer, including for The Australian Financial Review, the NZ Financial Markets Authority, and for real estate companies on both sides of the Tasman.

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