Changes to deposit and term deposit interest rates

Effective 27 April 2021 and 1 May 2021

Heritage Bank is making changes to deposit and term deposit interest rates effective Tuesday 27 April, 2021 that will help maintain the best interests of our customers overall.

The rate changes are as follows:

Transaction & Savings Accounts

  • Decrease the Cash Management Account rate for amounts of $250,000 or more by 15 basis points (bps) from 0.25% to 0.10%
  • Decrease the Money Manager rate for amounts of $50,000 or more by 20bps from 0.50% to 0.30%
  • Decrease the Pension Plus rate for amounts less than $50,200 by 10bps from 0.40% to 0.30%
  • Decrease the Pension Plus rate for amounts of $50,200 or more by 25bps from 0.70% to 0.45%
  • Decrease the Christmas Club rate by 30bps from 0.80% to 0.50%
  • Decrease the Online Saver base rate by 30bps from 0.65% to 0.35%
  • Decrease the Online Saver bonus intro rate by 10bps from 0.30% to 0.20% (resulting in a total headline rate of 0.55%)
  • Decrease Community Saver rates by 9-50bps
  • Decrease Body Corporate rates by 9-75bps
  • Decrease Farm Management Deposit call and term rates by 20-25bps

Term Deposits

  • Increase the 9 month rate by 10bps from 0.50% to 0.60%
  • Decrease the 8 month rate by 10bps from 0.60% to 0.50%
  • Decrease the 12 month rate by 5bps from 0.65% to 0.60%
  • Decrease the 24-60 month rates by 10bps from 0.80% to 0.70%

The following change will also come into effect from Saturday 1 May, 2021.

  • Decrease Target Bonus - Bonus Rate interest rate by 25bps from 0.75% to 0.50%

These changes are coming in to maintain the best interests of our customers overall. Our interest rate changes are implemented to ensure good pricing benefits for depositors and borrowers.

Any savings we make on reduced interest costs on deposit products are reinvested into providing better products and services to all of our members.

As a customer-owned bank, Heritage puts the best interest of members first. Unlike the big listed banks, we only aim to make a modest profit each year and then reinvest those funds into providing better products and services to all members. None of our profits are paid out to shareholders like the big listed banks.

You can find more information on our rates available on our account interest rates page. If you'd like to calculate your interest, our Savings Calculator is a quick online tool that allows you to compare your interest earnings from a savings account and term deposit. 

Basis points (bps) refers to a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01%, or 0.0001, and is used to denote the percentage change in a deposit or loan product.
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