Term Deposit

Make the most of your hard earned savings

We offer flexible and competitive Term Investment options to suit your investment needs.

Our competitive interest is calculated on a daily basis and can be paid at regular intervals (conditions apply) or on maturity to any account of your choice.

  •    –   You choose your investment term
  •    –   Flexible and competitive interest calculated daily
  •    –   Option of interest paid at regular intervals or on maturity
  •    –   You are advised of your options prior to maturity, including reinvesting for a further term

Money from term deposits are invested into your local community to help New Zealanders succeed together.

Term Deposit Rates – Effective 1 December 2020

Term $1,000 – $1,500,000
1 month 0.15% p.a.
2 month 0.15% p.a.
3 months 0.50% p.a.
4 months 0.60% p.a.
5 months 0.70% p.a.
6 months 0.90% p.a.
9 months 0.95% p.a.
12 months 1.00% p.a.
18 months 1.05% p.a.
24 months 1.10% p.a.
36 months 1.15% p.a.
48 months 1.15% p.a.
60 months 1.15% p.a.
Minimum shareholding is $1,000
– Maximum total shareholding permitted per customer is $1,500,000
– If an early withdrawal is approved by NZCU South, a reduced rate of    interest will apply as follows:
a) If a term deposit is withdrawn, in full or in part, within the first 30 days, 0% interest will be applied to the withdrawn portion.
b) Where the term deposit is withdrawn, in full or in part, before the maturity date but after the first 30 days, a reduced interest rate will be applied calculated using the advertised rate at the time the term deposit was opened, for the actual term the money was invested (as determined at our discretion), less 2%. The applicable interest rate will not reduce below 0%.

Making an early withdrawal

NZCU South may approve an early withdrawal of funds from a term deposit. If approved, customers are only eligible for one withdrawal per investment per term. Early redemptions incur a penalty interest rate. The penalty is a reduced interest rate which will be the advertised rate at the time the investment was opened, for the length of the time the money was invested (rounded down to the closest applicable rate), minus 2%.

For example, 

If a sum was originally invested for a period of two years but was redeemed after six months, the interest rate would be calculated using the six month rate as it was advertised at the time the account was opened, less 2%.

At the time the customer invested their funds, the following rates were advertised:

6 months 2.40% p.a.
9 months 2.45% p.a.
12 months 2.50% p.a.
24 months 2.55% p.a.

The customer opted to invest their funds for 24 months at a rate of 2.55% p.a. After 6 months they decide to break the investment and withdraw the funds. As the actual period of the investment has only been 6 months, the rate applied is the 6-month rate as it was advertised at the beginning of the investment. A 2% penalty interest is also deducted from the rate. The withdrawn investment is calculated using a rate of 2.40% – 2%, which equals 0.40% p.a.

For more term investment information see;