New Zealand Banks: 1-Year Fixed-Rate Deposit Rates 2026
If you have savings sitting in a low-interest account, a 1-year fixed-rate deposit could be a straightforward way to put that money to work. With interest rates shifting across New Zealand in 2026, understanding what different banks are offering on fixed-term deposits has become more relevant than ever for everyday savers looking to grow their funds with predictability.
Fixed-rate deposits give savers a guaranteed return over a set period, with no exposure to market fluctuations. For New Zealanders looking to lock in a rate for 12 months, the 1-year term remains one of the most popular choices — offering a balance between commitment and flexibility. As the Reserve Bank of New Zealand continues to adjust the Official Cash Rate, retail banks respond by updating their deposit offerings, which means the rates available today may look quite different from those available even a few months ago.
Compare New Zealand Banks: 1-Year Fixed-Rate Deposits
When comparing 1-year fixed-rate deposits across New Zealand banks, it pays to look beyond the headline rate. Some banks calculate interest annually, while others offer monthly or quarterly payouts. Early withdrawal penalties also vary, with some institutions allowing partial breaks under certain conditions and others applying strict fees. It is worth reading the product disclosure statement before committing to any fixed-term product.
New Zealand Fixed-Rate Deposit Comparison: 1-Year Terms
The major banks in New Zealand — including ANZ, ASB, BNZ, Westpac, and Kiwibank — all offer 1-year fixed-term deposit products, but the rates between them can differ by a meaningful margin. Smaller banks and non-bank deposit takers, such as Heartland Bank or SBS Bank, have in some periods offered more competitive rates than the larger institutions. This makes it worthwhile to consider a broader range of providers rather than defaulting to your existing bank.
| Bank / Provider | Product | Estimated Annual Interest Rate |
|---|---|---|
| ANZ Bank NZ | Term Deposit (1 Year) | ~3.90% p.a. |
| ASB Bank | Term Deposit (1 Year) | ~4.00% p.a. |
| BNZ | Term Deposit (1 Year) | ~3.95% p.a. |
| Westpac NZ | Term Deposit (1 Year) | ~3.90% p.a. |
| Kiwibank | Term Deposit (1 Year) | ~4.10% p.a. |
| Heartland Bank | Term Deposit (1 Year) | ~4.20% p.a. |
| SBS Bank | Term Deposit (1 Year) | ~4.15% p.a. |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
Highest 1-Year Fixed-Rate Deposit Interest Rates in New Zealand 2026
In 2026, some of the highest 1-year fixed-rate deposit interest rates in New Zealand are being offered by smaller or specialist banks and building societies rather than the major trading banks. Institutions like Heartland Bank have consistently positioned themselves competitively on term deposit rates. However, higher rates can sometimes come with tighter conditions — such as minimum deposit thresholds or restrictions on early access — so it is important to weigh the full picture rather than focusing solely on the headline rate.
What Affects Fixed Deposit Rates in New Zealand?
A key driver of fixed deposit rates in New Zealand is the Official Cash Rate (OCR) set by the Reserve Bank of New Zealand. When the OCR is high, banks typically pass on higher returns to depositors. In 2026, with the OCR having moved through several adjustments, savers are seeing more varied rate environments compared to the low-rate years following 2020. Other factors include competition between banks, the bank’s own funding needs, and broader economic conditions. Keeping an eye on OCR announcements can help you time your deposit decisions more effectively.
Tax Considerations on Interest Income
In New Zealand, interest earned on fixed deposits is subject to Resident Withholding Tax (RWT). The rate applied depends on your income bracket, ranging from 10.5% to 39%. Banks will deduct this automatically, but you should ensure your correct RWT rate is registered with your bank to avoid overpaying or underpaying. If you are unsure which rate applies to you, the Inland Revenue Department website provides clear guidance based on your annual income.
Understanding how 1-year fixed-rate deposit products work across New Zealand banks in 2026 is a useful step toward making more informed savings decisions. Comparing rates, understanding interest payment schedules, checking withdrawal conditions, and factoring in tax obligations all contribute to getting the most from a fixed-term deposit. Taking time to review multiple providers — not just your existing bank — can make a measurable difference to the return you receive over the course of a year.
