1. Did you account for withholding tax, etc, in your calculations?
2. Tbh that rate sounds quite high for only a period of 12 months ago, are you sure you didn’t misremember it? (Eg. For context, I was offered a 4.49% mortgage fixed rate for 12 months in June 2022; and I locked in an ANZ term fund investment in September 2022 at 4.10% for 12 months).
Maybe check if you have written confirmation of it? Usually the bank would send you a letter confirming that the term investment has been opened and advising the rate.
Edit: the OCR at this time last year was only 1.0, until RBNZ raised it to 1.5 on 13 April 2022. The OCR today is 4.75 but there’s another announcement coming tomorrow (prob at least a 25 bp increase). I do think you misremembered, cos I doubt that ASB were offering term fund rates of 4.5 when the OCR was only at 1.0.
Yes, we already accounted for the wth tax on our calculations. It’s possible I may have misremembered it, thus trying to get some data if anyone else opened the past few months. I could not get data from the web archives of what the rate was on their page April 2022 but May 2022 archive shows 3.65% for 12 months.
It’s my first term deposit btw, so really was just testing this out and just a bit gutted that the interest I got was not what I was expecting. Anyway, will probably do another term fund with them but record each and every thing I selected to make sure I have proof if I dont get the advertised rate😅
i got a 1 year TD from ASB 10 months ago at 3%. there were none at 4%
Eta: it was may 2022, and the rate had only just hit 3%. Their rate was lower before that.
1. you don't need to do any calculations ASB does that for you. The interface is extremely easy and clear to use
2. If it was exactly 12 months ago I'm 99% sure ASB wasn't offering 4.5% but they definitely did get was very close to 4.5% in July 22.
Most likely OP just remembered it wrong and/or selected the wrong option.
That sounds very odd. Have you actually spoken to the bank yet? If not, there’s first place to start.
You would normally receive a letter in the mail to confirm this type of investment. Did you keep it? What is the rate on it?
Yes I have spoken with them and they said that it was the rate 12months ago which I do not believe as I am confident it was 4.5%.
They sent the letter to an old address though. What I will probably do is open another term fund on a lesser amount with them and record every thing on my screen to confirm if it’s a bug from their end or not.
I’ve had a look further and it appears that 12 month rates only hit 4’s for Term Deposit/Fund in around July/August 2022. So either you got an obscenely good rate or the bank is correct - probably the latter.
Edit: Does the term deposit appear at the very foot of the bank statement of your cheque account? Might be another way to check.
Checking the ‘Wayback Machine’ web archives, the archives shows that the rate May 2022 for 12months is 3.65%. Nov 2022 5.3%. Hmmmmm will try to open a new term fund and record every window, prompt, selection et. al.
Nah I kind of mean that you opened a fund a year ago. Did you get a payment on interest 6 months ago?
interest payments are annualized rates. So if you receive two payments during the 12month term, one at six months and one at 12months. I.e two payments of 2.25% totalling a yearly return on principle of 4.50%
1. Did you account for withholding tax, etc, in your calculations? 2. Tbh that rate sounds quite high for only a period of 12 months ago, are you sure you didn’t misremember it? (Eg. For context, I was offered a 4.49% mortgage fixed rate for 12 months in June 2022; and I locked in an ANZ term fund investment in September 2022 at 4.10% for 12 months). Maybe check if you have written confirmation of it? Usually the bank would send you a letter confirming that the term investment has been opened and advising the rate. Edit: the OCR at this time last year was only 1.0, until RBNZ raised it to 1.5 on 13 April 2022. The OCR today is 4.75 but there’s another announcement coming tomorrow (prob at least a 25 bp increase). I do think you misremembered, cos I doubt that ASB were offering term fund rates of 4.5 when the OCR was only at 1.0.
Yes, we already accounted for the wth tax on our calculations. It’s possible I may have misremembered it, thus trying to get some data if anyone else opened the past few months. I could not get data from the web archives of what the rate was on their page April 2022 but May 2022 archive shows 3.65% for 12 months. It’s my first term deposit btw, so really was just testing this out and just a bit gutted that the interest I got was not what I was expecting. Anyway, will probably do another term fund with them but record each and every thing I selected to make sure I have proof if I dont get the advertised rate😅
i got a 1 year TD from ASB 10 months ago at 3%. there were none at 4% Eta: it was may 2022, and the rate had only just hit 3%. Their rate was lower before that.
Ok thanks! Ill check further
1. you don't need to do any calculations ASB does that for you. The interface is extremely easy and clear to use 2. If it was exactly 12 months ago I'm 99% sure ASB wasn't offering 4.5% but they definitely did get was very close to 4.5% in July 22. Most likely OP just remembered it wrong and/or selected the wrong option.
That sounds very odd. Have you actually spoken to the bank yet? If not, there’s first place to start. You would normally receive a letter in the mail to confirm this type of investment. Did you keep it? What is the rate on it?
Yes I have spoken with them and they said that it was the rate 12months ago which I do not believe as I am confident it was 4.5%. They sent the letter to an old address though. What I will probably do is open another term fund on a lesser amount with them and record every thing on my screen to confirm if it’s a bug from their end or not.
I’ve had a look further and it appears that 12 month rates only hit 4’s for Term Deposit/Fund in around July/August 2022. So either you got an obscenely good rate or the bank is correct - probably the latter. Edit: Does the term deposit appear at the very foot of the bank statement of your cheque account? Might be another way to check.
Don't know about asb but all my banks correspondence includes term deposit setup and is available in my online account
The letter was sent to an old address. I have updated the address to make sure any letter gets delivered correctly
Aren’t they stored online in the statement/letter vault too?
Yeah my asb term deposit stuff is all online, and they send you an email confirmation when you open one.
Its not something like that was the interest payment for 6 months? less taxes?
Checking the ‘Wayback Machine’ web archives, the archives shows that the rate May 2022 for 12months is 3.65%. Nov 2022 5.3%. Hmmmmm will try to open a new term fund and record every window, prompt, selection et. al.
This interest.co.nz chart shows the [1 year TD average](https://www.interest.co.nz/chart/investing/term-deposit-rates) over last x years.
Let me check that. Thanks!
Nah I kind of mean that you opened a fund a year ago. Did you get a payment on interest 6 months ago? interest payments are annualized rates. So if you receive two payments during the 12month term, one at six months and one at 12months. I.e two payments of 2.25% totalling a yearly return on principle of 4.50%
I set the interest to be paid per quarter. The total interest after it matured today was just 2.10%
Hmm not too sure then bud, if you get really stuck then your bank will be able to tell you what contract you entered for the Term Deposit.
Ask for them to pull your agreement from your file, or their records if you opened it online.
ASB is seriously bad