TermDepositRate.co.nzNZ term deposit rates
Important: TermDepositRate.co.nz is a rate information service, not a bank, deposit taker or licensed financial adviser. Nothing here is financial advice or an offer of a financial product. Rates are indicative, quoted in NZD before tax, and change without notice. Term deposits lock your money up for the chosen term and early withdrawal may reduce your interest. Terms · Privacy · Contact us
#5 highest rate in our table

Kiwibank 12-month Term Deposit

The only fully New Zealand government-owned retail bank. An AA credit rating, branches and NZ Post counters nationwide, and a rate that usually edges the Australian-owned majors.

Indicative rate
4.90%
p.a. · 12 months · NZD
Minimum deposit
$10,000
Term
30 days to 5 years
Interest paid
On maturity, or monthly/quarterly on longer terms
Credit rating
AA (S&P)
Depositor Compensation Scheme
Yes — up to $100,000 per depositor
How to apply
Online banking, phone or branch

About this term deposit

Kiwibank is owned by the New Zealand Crown. That ownership plus an AA credit rating from S&P makes it the strongest-rated name in our top five, and it still prices term deposits above ANZ, ASB, BNZ and Westpac on most terms.

Existing customers can open a term deposit inside internet banking in a couple of minutes and have maturing funds swept back to their everyday account. New customers open a transaction account first.

Terms range from 30 days to five years with a $10,000 minimum on most standard deposits. Monthly interest is available on terms of a year or longer, which is popular with retirees drawing an income.

Good for

  • ✓Savers who want the highest credit quality with a decent rate
  • ✓People who already bank with Kiwibank
  • ✓Retirees wanting monthly interest payments
  • ✓Balances above the $100,000 scheme cap

Watch out for

  • !$10,000 minimum locks out smaller savers
  • !Rate is lower than the specialist lenders in our table
  • !Early withdrawal needs 31 days' notice and reduces interest
  • !You usually need a Kiwibank everyday account to open one online

What could this pay?

$
Rate
4.90% p.a.
Interest / year
$1,225
Over the term
$1,225

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 Kiwibank government guaranteed?

No. Crown ownership is not a guarantee of your deposit. Protection comes from the Depositor Compensation Scheme, which covers up to $100,000 per depositor per licensed deposit taker.

What is the minimum term deposit?

$10,000 for most standard terms. Some notice-saver products start lower.

Can I get interest paid monthly?

Yes, on terms of 12 months or more you can usually choose monthly or quarterly interest instead of interest at maturity.

What happens at maturity?

You can take the money, roll the principal over, or roll principal plus interest. Rollovers default to the current advertised rate, which may be lower than what you originally locked in, so check before the maturity date.

Kiwibank 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 $10,000 · Interest paid on maturity · Rate indicative as at 29 August 2026.