- Minimum deposit
- $1,000
- Term
- 12 months (1 month to 5 years available)
- Interest paid
- On maturity, or monthly/quarterly on longer terms
- Credit rating
- BBB (S&P)
- Depositor Compensation Scheme
- Yes — up to $100,000 per depositor
- How to apply
- Online in about 10 minutes
About this term deposit
Heartland Bank is a New Zealand registered bank listed on the NZX, best known for reverse mortgages, livestock and motor finance — and for paying some of the highest advertised term deposit rates in the country. It funds much of its lending book with retail deposits, so it prices competitively rather than relying on branch loyalty.
The trade-off is a BBB credit rating rather than the AA- of the Australian-owned majors. That is still investment grade, and since mid-2025 all New Zealand deposit takers are covered by the Depositor Compensation Scheme, which protects up to $100,000 per depositor per institution.
Terms run from one month out to five years. Interest is paid at maturity on shorter terms, with monthly or quarterly options on terms of a year or more if you want the income rather than the compounding.
Good for
- ✓Savers chasing the highest headline NZD rate
- ✓Smaller balances — the minimum is only $1,000
- ✓People happy to open and manage everything online
- ✓Laddering: short terms reprice quickly if rates rise
Watch out for
- !BBB rating is a notch below the major banks
- !No branch network — support is phone and online
- !Breaking a term early needs 31 days' notice and cuts your interest
- !Rates move with the OCR and can change any day
What could this pay?
- Rate
- 5.20% p.a.
- Interest / year
- $1,300
- Over the term
- $1,300
Simple-interest illustration in NZD, gross of tax. Resident withholding tax or PIE tax will be deducted, and compounding options may change the result. Not a quote.
Questions Kiwis ask
Is my money safe with Heartland Bank?
Heartland is a registered bank supervised by the Reserve Bank of New Zealand and its deposits are covered by the Depositor Compensation Scheme up to $100,000 per depositor. That said, no investment is risk free and the scheme cap applies per institution, so large balances are often spread across providers.
What is the minimum term deposit at Heartland?
$1,000, which is one of the lowest minimums of any New Zealand bank. Many competitors start at $5,000 or $10,000.
Can I get the interest paid monthly?
On terms of 12 months or longer you can usually elect monthly or quarterly interest. Choosing income instead of compounding slightly reduces the total return over the term.
How is the interest taxed?
Interest is taxable income in New Zealand. Resident withholding tax is deducted at your nominated rate, so give the bank your IRD number and correct RWT rate or you will be taxed at the default rate.
Heartland Bank and all other company names, brands and logos referred to on this page are the property of their respective owners and are used for identification and comparison purposes only. TermDepositRate.co.nz is an independent website and is not affiliated with, endorsed by, sponsored by or acting as an agent for any provider named. Product details, indicative rates and commentary on this page are illustrative summaries only, are not sourced from or approved by the provider, and must not be relied on when making an investment decision.
Minimum deposit $1,000 · Interest paid on maturity · Rate indicative as at 29 August 2026.