{
  "id": 2851122,
  "title": "Term deposit rates will rise - but is that where your money should be?",
  "url": "https://urgent.news/2026/08/23/term-deposit-rates-will-rise-but-is-that-where-your-money-should-be",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-23T18:46:26.000Z",
  "source": {
    "name": "RNZ Business",
    "slug": "rnz-business",
    "url": "https://www.rnz.co.nz/news/personal-finance/1094544/term-deposit-rates-will-rise-but-is-that-where-your-money-should-be"
  },
  "original_language": "en",
  "account": "Term deposit rates have been on the rise, but investors should consider if this is the best place for their money. In October last year, the average two-year rate was just over 3.5 percent, while the average five-year rate was just under 4 percent. Currently, those rates stand at 4.17 percent and 4.66 percent, respectively. Shorter terms have seen less movement, with the six-month rate remaining unchanged and the one-year rate increasing from 3.5 percent to 4 percent. The official cash rate has fluctuated between 2.25 percent and 2.5 percent, and it is set to be reviewed next month.\n\nBNZ adjusted its term deposit rates on Friday, increasing its one-year rate to 4.05 percent and its 30-day rate to 1.85 percent. Bank of China also raised its two-year rate to 4.3 percent. Squirrel's chief executive, David Cunningham, expects the interest rate on short-term deposits to increase if the official cash rate does. However, senior economist Chris Tennent-Brown at ASB acknowledges that predicting the future is challenging. He notes that underlying swap rates have been volatile, and US long-term interest rates have followed suit. Tennent-Brown suggests that if the Reserve Bank increases the official cash rate as expected, it will affect higher short-term deposit rates and shorter-term mortgages. While some popular rates may move, long-term term deposit rates are more likely to be impacted by inflation expectations and global long-term rates.\n\nThe situation is complex, with many factors at play, including new developments like the US Treasury Secretary discussing changes to the US mortgage market's duration to lower long-term rates. People's fear of inflation, which has been as volatile as oil prices, is also a significant consideration. Money expert Susan Edmunds advises that anyone considering putting money into a term deposit should ensure it is the right choice for their financial goals. If the funds are required for a house deposit within the next six months, liquidity should be the priority. Edmunds stresses the importance of creating a strategy to outpace inflation when looking for better investment options.",
  "summary": "As interest rates have risen, term deposits rates have inched up.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}