Term Deposit Reviews - RaboPlus NZ

Reviewer: Sharlene

I disagree with many of the below comments. Many are saying Kiwibank are offering a better rate, but this only applies to those with over $10,000 to invest. Rabo is still the best for anyone with under under $2000 for call accounts and under $10,000 for term deposits. I do agree that the term deposit rates are weird to be at a lower rate than the on-call account, but I can get over this, just leave my money on-call.

Reviewer: Gareth

You have to check the minimums with those other banks. I just checked out some of the other term deposits mentioned as being better and it seems to me unfair to compare an account with 10k minimum to one with a 1k minimum. Well done RABO on publishing both positive and negative views.

Reviewer: Andrew

your term deposit rates are getting worse by the week! whats the point of having a term deposit with interest rates less than the on-call accounts. I had planned to make a term deposit at the beginning, but decided to wait to see if the rates increased. The only reason I'm still with raboplus is because of the on-call accounts. You seriously need to get it together raboplus. I can't see how you ever got an award for it. Oh, and why can you only give a min rating of 2 stars? for the record this is a 1 star rating.

Mike Heath: Andrew, thanks for the feedback.  The relationship between On Call rates and Term Deposits is a function of the yield curve as opposed to the features/benefits of the products that make up the yield curve.  The yield curve is currently negative, reflecting the expectation of the wholesale market that interest rates in the future will decrease.  With regards to the star ratings, my apologies this is a technical glitch which we will resolve as soon as possible – thanks for pointing it out.

Regards, Mike

Reviewer: Charlie

It is interesting to read the comments posted here. I recall very similar comments by people regarding the difference between rates offered by "sound finance companies" being so much more competitive than banks only about 18 months ago....we all know how that ended!!! It sets off some alarm bells for me that a low cost structure business like Raboplus that has proven itself to be a market leader on investment interest rates (unlike other banks) finds itself in a position where it is presumably unviable to match otherbanks rates. This must be because they can still source funds from the money markets (based on their credit rating) at a competitive rate. Anyone who follows the money markets on the news will note the reduction in 90 day bank bills loosely relates to movements in raboplus's rates (certainly the trend is downwards on 90 day bills). Is it a sound investment strategy to invest hard earned savings with banks that are obviously having to pay more on the money market than a AAA rated bank?? I personally feel that the money market has a better understanding of risks associated with various banks than I do. I would be cautious about putting all my money with banks that obviously have issues that require them to have to pay "above the market" for funds. This begs the question what are these issues?? Don't be fooled into thinking that these issues only relate to NZ these banks have global exposure and some have suffered major losses as a result of the credit crunch and american sub prime market. Is this why the money market is applying a premium for risk to put funds with these banks?? For those that rates are the main focus.... Finance Companies have increased what they are paying for funds also... there are somer great rates available there too....(seems like a silly idea huh?) Just some food for thought....

Reviewer: Alex

I swallowed hard and bought a Kiwibank Term Deposit 8.85 for 5 months. With more branches and money backing Rabo why can't you match this? ANZ offers 8.5 for 100 days...why not match this? And the significant other stuff IS a bit tawdry ain't it?

Reviewer: Sarah

Your term deposits are not as sharp as they were, especially compared to the current kiwibank PIE. The rates were what kept me in the face of an unnecessary sexualised (and sexist) advertising campaign and branding.

Reviewer: Kevin

Kiwi bank is offering 8.85% for 5 months TD.

Reviewer: Karen

Been with Rabo right from the beginning and have advised many to join. Its fine for on-call but when you check the term deposit rates even a year ago it paid to stay on-call. Advise the same now. If you go elsewhere you lose convenience and security for better rates. I don't blame rabo for recouping some costs now they have a good customer base. The other banks are trying to catch up and longer term are better at present. Rates are coming down lock in longer rates.

Reviewer: Joe

I originally joined Rabo because of there high Interest rates, they have declined. My decision to stay with Rabo is more than just Interest rates. So far with Rabo have offered 100% better service than my "Significant Other" bank. Rabo is also one of the largest banks in the world and have a higher credit rating than any other bank in NZ. I feel my hard earned money is safer here than any where else, lets face it, there are a lot of companies going belly up here in NZ. You need to look at the bigger picture.