What investment return can I expect on a term deposit?

When you’re looking for a great return on your investment, look no further than a term deposit. Unlike shares, stocks, or standard savings accounts, term deposits work harder to offer kiwis like you the maximum possible return on the money you make today, for the future you’ll be living tomorrow.

In fact, there’s never been a better time to invest your hard-earned savings and apply for a term deposit, with credit unions like NZCU Baywide currently offering some of the highest returns on investment in New Zealand.

With great rates like these, what kind of return can you expect from your term deposit investment? To find out, simply use the investment rates listed below:

Term   Investment rate
1 - 2 months 1.50%
3 months 3.10%
4 months 3.30%
5 months 3.50%
6 months 4.00%
9 months 4.05%
12 months 4.25%
18 months 4.25%
24 months 4.25%
36 months 4.30%
48 months 4.40%
60 months 4.50%

Things you should know about investment rates & your returns

  • Interest is calculated on a daily basis.
  • Investors are advised of their options prior to maturity.
  • Maximum deposit $1 million per member.
  • Minimum deposit is $1,000 for adults and $500 for children under 18 years old.
  • These are indicative rates only and may be subject to change without notice.
  • Where a term deposit is withdrawn prior to the maturity date, the applicable interest rate will be reduced by up to 2%. The applicable interest rate will not reduce below 0%.

Do you want to invest in your future with an NZCU Baywide term deposit?

Apply online for a term deposit today.

An example of a term deposit in action

Name: Jacob
Nationality: New Zealand
Age: 55
Occupation: Dairy Farm Owner

Scenario: Jacob has spent most of his adult life working, from his early teenage years delivering papers right through to his role as owner and manager of a small dairy farm just outside of Napier. Jacob loves his farm, but his stiff joints, nagging aches, and niggling pains are telling him his body thinks otherwise.

When considering retirement, Jacob thinks about how he hasn’t always been the best saver. Like most of us, he’s had his fair share of loans, debts, and other expenses that have all chipped away at his savings.

Having compared the savings accounts and term deposits on offer, Jacob applies for a term deposit. By putting away the money he’s saved over the years, Jacob hopes to boost his retirement savings, supplement his Kiwisaver, and ensure he can enjoy a stress-free retirement.

How did investing in a term deposit help Jacob save?

Upon opening his term deposit, Jacob deposits $10,000 for a term of 5 year (60 months). With the way term deposits work, this gives him a guaranteed rate of 4.50% p.a. for the life of the investment.

By the time Jacob retires at the age of 60, he’ll have turned that $10,000 into $12,150. That’s an extra $2,150 in the bank simply by choosing a great term deposit investment and letting his money do the hard work for him.