As of this morning, Kiwibank has increased its one-year fixed rate from 3.39% to 3.45%. This change came following the announcement of the new capital requirement, and we predict that other banks will follow suit before the end of the year.
In the one-year space, ASB and Westpac are the only two of the big five banks who are still offering 3.39%, followed by Kiwibank at 3.45%, BNZ at 3.49% and ANZ at 3.55%. Interestingly enough, to give a point of difference, BNZ and ANZ are offering 3.39% for 18 months.
Along with the one-year fixed rate, Kiwibank has also increased its five-year term to 4.09%. This new five-year rate is still one of the lowest amongst the top five banks, with BNZ currently still the lowest at 3.99%.