RaboPlus Term Deposits … our Term Deposit rates are not as low as people are people telling me.

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RaboPlus Term Deposits … our Term Deposit rates are not as low as people are telling me.

Submitted by Mike Heath on Thursday, 26 March 2009 | Category: Term Deposits

I acknowledge they are not market-leading, a fact we are not trying to hide, but they are not that bad either.

With markets the way they are and rates at an all time low, unless you’re looking to lock your money away for say, 3 to 5 years where our rates are very competitive, what we currently have to offer in terms of short term deposits probably isn’t going excite you! Our triple A rating has a price and that, for the moment at least, is lower Term Deposit rates (see my post on the subject from last year).

I’ve just had a look on Interest.co.nz to see how we do stack up when compared to the major trading banks here in NZ (ANZ, ASB, BNZ, Kiwibank, National Bank and Westpac) for 3 and 5 year term deposits.  The results read actually very well for us, even if I do say so myself:

3 year Term Deposits

If you have anywhere between $10,000 and $50,000 to invest in a 3 year Term Deposit, our rate of 4.60% is almost a third of a percent (0.28%) better than the average of the trading banks, and as a rate it is the second highest rate in the market!

5 year Term Deposits

If you have anywhere between $10,000 and $50,000 to invest in a 5 year Term Deposit, our rate of 5.40% is almost half of a percent (0.48%) better than the average of the trading banks, and as a rate it is the third highest rate in the market!

I’d say our rates are not as bad as what people may think, relative to the competition and we haven’t changed i.e. we still offer the best rates that we can.  I’ll continue to take part in these conversations as I appreciate the opportunity and I promise to always be open and transparent – I hope you appreciate the honesty.

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9 Comments

Comment by Chopper Reid on 26-03-2009 01:53


Your Triple A rating whilst being an excellent marketing tool has lost value in the marketplace since the Government introduced the New Zealand deposit guarantee scheme.

It is almost like other banks are ‘buying’ people’s money in at the moment by offering some relatively competitive interest rates.

It will be good to see what Rabo does to counter this.


Comment by chris on 26-03-2009 09:04


Rubbish, The theft of the elderly's FRUGAL savings is the worst solution to this crisis. It teaches the young that they will be bailed out at any time they borrow more than they can afford. What will the World do next time....cos this is NOT finished yet. Raboplus is not doing any good service to THEIR clients who SAVED for a RAINY DAY...cos it is RAINING and the SAVERS are paying for those who over borrowed.
Your deposit rates are worse than most other BANKS. Please explain.

Comment by darryl on 26-03-2009 09:28


......and today they did:)

Comment by Craig on 05-04-2009 12:18


Have you considered offering Cash Advantage term deposits? I notice a number of other providers are offering them.

Comment by Mike Heath on 06-04-2009 11:06


We have Craig, but to be honest, given the current pricing of TDs we have to question bringing such a product to market.

Comment by Ron on 13-04-2009 07:34


Its is sad to see Raboplus lagging behind the other major banks on 3mth deposit rates. Dont hide behind your AAA (advertising) rating

Comment by Craig on 15-04-2009 08:36


I must agree with Ron, the only points at which Rabo compares favourably with other providers is 1 month and 3-5 years. There is a rather large gap in the middle...

Comment by bill hansen on 09-04-2010 07:18


One half of you doesnt know what the other half is doing.I am staggered at the ridiculous (interest)errors

Comment by Mike Heath on 11-04-2010 10:54


Bill can you explain what you mean? I see your comment is in response to a blog post from March 2009 where I was talking about our longer-dated TDs but I can’t see what you are referring to. Thanks in advance.

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