WELLINGTON (CU)_Over the recent months, banks across New Zealand have been increasing, the interest rates offered on term deposits, with Australia and New Zealand Banking Group (ANZ) becoming the latest to join the tide. According to the multinational financial service provider, the 18-month rate will be raised by 10 basis points, to 1.5 per cent, while the three and five-year rates will also be increased by 15 basis points. The biggest jump will be in the four-year rates, which were lifted by 25 basis points to 2.15 per cent.
This may come as good news for many people who have set aside their rainy day funds in term deposits, particularly considering the near-zero returns that are currently being offered on savings accounts across the island nation. Nevertheless, analysts warn that despite the recent rate hikes, no one should expect to live off returns from their term deposits, at least not anytime soon.
According to Shamubeel Eaqub, an experienced economist and partner at Sense Partners, recently, there has been a significant…
