Best 12 Month (1 Year) Term Deposit Rates in New Zealand
Compare 12 month term deposit (fixed deposit) rates from the major NZ banks we track, ranked highest first. The 1-year term is the most popular choice for New Zealand savers. Updated daily.
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Updated: 14 Aug 2026, 06:13 AM
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12 Month Term Deposit Rates
| Bank Details | 12 mths ↕ |
|---|---|
| | 3.90% |
| | 3.90% |
| | ⭐ 4.00% Top Rate |
| | 3.80% |
| | 3.90% |
| | 3.85% |
| | 3.70% |
| | 3.55% |
| | ⭐ 4.00% Top Rate |
| | 3.90% |
| | 3.80% |
| | 3.90% |
| | 🏆 4.05% Best Rate |
| | 3.90% |
| | 3.90% |
| | 3.90% |
Last updated: August 14, 2026 at 06:13 AM
Highest 12-month term deposit rate in NZ
Rates last updated:
- As of 14 August 2026, the highest 12-month term deposit rate in NZ is 4.05%, offered by Rabobank.
12 Month Term Deposits: New Zealand's Most Popular Term
The 12 month (1 year) term deposit is the benchmark term most New Zealanders choose. It strikes a balance between a competitive fixed rate and a commitment you can plan around. As of August 2026, 1-year rates from the banks we track range from 3.55% to 4.05%.
Why the 1 year term is so popular
A 12-month term locks in today's rate for a full year while still returning your money within a foreseeable horizon. It's a natural fit for an annual savings goal, a lump sum you don't need immediately, or as the building block of a deposit ladder.
Should you go longer than 12 months?
If you expect rates to fall, locking in a longer term can secure today's rate for two years or more. If you want to keep your options open, a 6-month term re-prices sooner. Compare across terms before committing.
Estimate your 1-year return at today's rates with our term deposit calculator.
12 Month Term Deposit FAQs
Which bank has the best 12-month term deposit rate?
The leading 12-month rate moves between banks over time. The table above shows current 12-month term deposit (fixed deposit) rates across major New Zealand banks, ranked so you can spot the best available rate, then confirm it with the bank.
What is a 12-month term deposit typically used for?
A 12-month term is a popular middle ground — long enough to earn a competitive fixed rate, short enough that money isn't locked away for years. It's commonly used for a specific savings goal or money not needed until around then. Whether it fits your situation depends on your own circumstances.
What happens at the end of a 12-month term deposit?
At maturity you can withdraw the funds, reinvest at the current rate, or roll over the principal and take the interest. Banks differ on automatic rollover and grace periods, so set your instructions before maturity.
Not financial advice: this page provides factual information only. It lists publicly published term deposit rates ranked by interest rate, and does not take into account your financial situation, goals or risk tolerance. Rates are collected once a day and may not match a bank's current offer — confirm the rate, minimum deposit, fees and break conditions directly with the bank before investing. Deposits with a licensed deposit taker are covered by the Depositor Compensation Scheme up to $100,000 per depositor, per institution; amounts above that are not. For advice about your own circumstances, speak to a licensed financial advice provider.