- Minimum deposit
- $5,000
- Term
- 30 days to 5 years
- Interest paid
- On maturity, or quarterly on longer terms
- Credit rating
- BBB (Fitch)
- Depositor Compensation Scheme
- Yes — up to $100,000 per depositor
- How to apply
- Online, by phone or in a branch
About this term deposit
SBS Bank is a mutual — there are no outside shareholders, so profits are reinvested or returned to members. It is one of the few New Zealand banks that combines a genuinely competitive term deposit rate with a branch network and a New Zealand-based contact centre.
Terms run from 30 days to five years, with a $5,000 minimum on most. Quarterly interest is available on terms of a year or more, which suits retirees who want the deposit to top up regular income rather than compound.
SBS also runs a PIE fund alternative, which can be worth comparing if your marginal tax rate is 33% or 39%, because the PIE tax rate is capped at 28%.
Good for
- ✓Savers who still want to walk into a branch
- ✓Members who like keeping profits in New Zealand
- ✓Income seekers wanting quarterly interest
- ✓Higher-rate taxpayers who should compare the PIE option
Watch out for
- !$5,000 minimum is higher than Heartland or Rabobank
- !BBB rating sits below the major banks
- !Early withdrawal needs consent and reduces interest
- !Branch coverage is strongest in the South Island
What could this pay?
- Rate
- 5.05% p.a.
- Interest / year
- $1,263
- Over the term
- $1,263
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
Who owns SBS Bank?
Its members. SBS is a mutual building society turned registered bank, so every term deposit or account holder is effectively a part-owner rather than a customer of an overseas parent.
What is the minimum term deposit?
Generally $5,000 for standard term deposits. Some promotional terms and the PIE option can differ, so confirm before applying.
Can I break the term early?
Only with SBS's agreement. Expect a notice period and a reduction in the interest rate paid for the time your money was invested.
Is a PIE better than a term deposit for me?
If your marginal income tax rate is 33% or 39%, a PIE taxed at the 28% prescribed investor rate can leave more in your pocket for the same headline rate. At 17.5% there is usually no advantage. This is general information, not tax advice.
SBS 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 $5,000 · Interest paid on maturity · Rate indicative as at 29 August 2026.