Business Term Deposits NZ 2026
Maximise returns on your company's cash reserves. Compare term deposit rates from all major NZ banks and earn competitive, fixed returns on surplus business funds.
Current Highest Business Rate
Best rate available for business deposits
Better Than Cash
Earn significantly more than a business transaction account on idle cash
Secure & Guaranteed
Fixed rates with deposits protected up to $100,000 under DGS
Predictable Returns
Know exactly what your business will earn for cash flow planning
Top Term Deposit Rates for Business
Current competitive rates for company deposits
| Bank | Term | Rate | Interest Paid |
|---|---|---|---|
| Westpac | 5 years | 4.40% Best Rate | At maturity, monthly or compounding |
| ASB | 5 Years | 4.30% | 4.30% p.a. |
| Westpac | 4 years | 4.30% | At maturity, monthly or compounding |
| Rabobank | 5 years | 4.25% | 4.30% |
| ANZ | 5 years | 4.20% | Quarterly, six monthly or annually |
| Rabobank | 4 years | 4.11% | 4.15% |
| Westpac | 3 years | 4.10% | At maturity, monthly or compounding |
| ASB | 4 Years | 4.10% | 4.10% p.a. |
| BNZ | 5 years | 4.10% | At maturity |
| ANZ | 4 years | 4.05% | Quarterly, six monthly or annually |
Business Term Deposit Guide
Why Businesses Use Term Deposits
Term deposits are an effective way for businesses to earn returns on surplus cash that isn't needed immediately. Rather than leaving funds in a transaction account earning minimal (or zero) interest, businesses can earn competitive fixed rates while maintaining the security of capital.
Types of Business Cash Suitable for Term Deposits
Operating Reserves
Cash held for future operating expenses. Match term length to when funds are needed.
Tax Provisions
GST, PAYE, and income tax provisions can earn interest until payment dates.
Capital Expenditure Funds
Savings for equipment, property or major purchases can grow while you plan.
Emergency Reserves
Business continuity funds. Consider shorter terms for flexibility.
Tax Treatment of Business Interest
Interest earned on business term deposits is assessable income and will be included in your company's taxable income. RWT (Resident Withholding Tax) is deducted at source at company rate (typically 28%) and credited against your tax liability.
Note: Interest income is GST-exempt (not a taxable supply), so there's no GST impact on term deposit returns.
Business Term Deposit Strategy
- Cash flow matching: Align maturity dates with known expense dates
- Laddering: Spread deposits across multiple terms for regular liquidity
- Rate shopping: Compare rates regularly - they change frequently
- Large deposit negotiation: Banks may offer premium rates for deposits over $500k
- DGS limits: Consider spreading over $100k across multiple institutions
Business Term Deposit FAQs
Do NZ banks offer term deposits for businesses?
Yes, all major NZ banks offer term deposits for businesses. They work similarly to personal term deposits, allowing companies to earn fixed interest on surplus cash. Some banks offer special rates for larger business deposits.
Are business term deposits covered by the Deposit Guarantee Scheme?
Yes, business deposits at licensed NZ deposit takers are covered up to $100,000 per depositor. A company is a separate depositor from its directors personally. Large corporates may need to consider splitting deposits across institutions for full coverage.
What documents are needed to open a business term deposit?
You'll typically need: company registration documents, director identification (drivers licence/passport), IRD number, and beneficial ownership declaration. Most banks require an existing business account with them first.
Can I break a business term deposit early?
Most banks allow early withdrawal but charge a penalty (typically reduced interest rate). Some business-specific products may have stricter conditions. Always check the terms before committing, especially for large amounts.
Maximise Your Business Cash Returns
Compare rates from all major NZ banks and find the best return for your company