At last - some good news for savers

Deposit rates have headed upwards in the last six months which is good news for savers. Photo / 123RF.

Short-term deposit rates have risen in the last six months and are now the highest they have been in nearly two years, according to Canstar research.

Figures from the financial ratings firm show the average six month term deposit rate for $25,000 was 3.37 per cent on June 30.

The last time this average rate was at, or exceeded,this level was in September 2015 when Reserve Bank data shows the average was 3.44 per cent.

Jose George, Canstar general manager, said deposit rates were rising on the back of an increased focus by banks on raising funds from New Zealand savers.

"There's been a lot more stability in the savings market than we've seen in the mortgage market.

"With a renewed focus on raising funds at a domestic level, banks now vying for the attention of savers and rates are steadily creeping up. Good news for consumers."

Comparing average rate rises over the last six months show two year term deposit rates have risen the most.

At the start of the average the average two year rate was 3.60 per cent. It was 3.79 per cent as of June 30.

Saving rates have been subdued in recent years with the official cash rate at a record low pushing pressure on those with money in the bank.

George said minimum rates had not dropped since the start of the year while maximum rates had risen across the board.

Term deposits had experienced the largest change with rises of up to 65 basis points on maximum rates for savings of $25k or more.

• Annualised rate for $25k deposit. Source: Canstar