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Term Deposit Report: Longer-term rates lift, short terms stay anchored

  • Low interest rates have been helping borrowers and frustrating savers over recent years.
  • Term deposit interest rates were steadily trimmed over 2020 and are significantly below the average levels of the past 10-15 years.
  • While we appear to be turning a corner in early 2021 and have seen a lift off the lows for the longer-term rates over the past month, we still expect term deposit interest rates to remain significantly below historical averages over the coming years.

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Chris Tennent-Brown

ASB Wealth Senior Economist

Chris has worked as an economist for ASB and Commonwealth Bank of Australia in Sydney since 2005. His work has involved monitoring and forecasting trends in the New Zealand economy, with a focus on drawing implications for financial markets and investments. Chris is passionate about savings issues, and much of his current work is focussed on broadening peoples understanding of investments. Chris obtained a Bachelor of Commence at Auckland University, majoring in Economics, and prior to joining ASB worked in the funds management industry for Bankers Trust and BT Funds Management. With over 20 years' experience in finance, Chris has also spent several years farming, and was a New Zealand representative cyclist. When not at work, Chris likes to travel, cycle, and spend time with his family and numerous pets.

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