Here are Heartland Bank’s current term deposit rates, how its funding model works, and whether it’s safe.
Heartland Bank is a registered NZ bank, regulated by the RBNZ, covered by the Depositor Compensation Scheme up to $100,000. It funds its lending mainly from retail deposits (not wholesale funding) and has fewer branches than the big banks. On 30 September 2026 Heartland's term deposit rates were 3.55% (6 months) to 4.35% (2 years), and up to 4.85% for 5 years.
Heartland Bank Overview
| Feature | Detail |
|---|---|
| Type | Registered New Zealand bank |
| Listed | NZX: HGH (Heartland Group Holdings) |
| RBNZ regulated | ✅ Yes |
| Depositor Compensation Scheme | ✅ Yes — $100,000 per depositor |
| Founded | 2011 (merger of building societies), registered as a bank by the RBNZ in 2012 |
| Headquarters | Auckland, New Zealand |
| Key business | Retail deposits, reverse mortgages, rural, motor vehicle finance |
| Online platform | Yes: deposits opened online or in the Heartland app |
| Branches | Few (mainly online) |
| Proposed merger | Heartland has announced a proposed merger with TSB; it says nothing changes for customers for now |
Heartland Term Deposit Rates
Heartland’s published rates, current as at 1 October 2026 (checked 30 September 2026). Rates change without notice, so confirm at heartland.co.nz before you invest.
| Term | Rate (p.a.) | Interest paid | Term PIE available? |
|---|---|---|---|
| 1 month | 1.80% | On maturity | No |
| 2 months | 1.90% | On maturity | No |
| 3 months | 2.90% | On maturity | Yes |
| 4 months | 3.10% | 3-monthly | Yes |
| 5 months | 3.20% | 3-monthly | Yes |
| 6 months | 3.55% | 3-monthly | Yes |
| 9 months | 3.70% | 3-monthly | Yes |
| 12 months | 4.05% | 3-monthly | Yes |
| 15 months | 4.05% | 3-monthly | Yes |
| 18 months | 4.30% | 3-monthly | Yes |
| 2 years | 4.35% | 3-monthly | Yes |
| 3 years | 4.50% | 3-monthly | Yes |
| 4 years | 4.75% | 3-monthly | Yes |
| 5 years | 4.85% | 3-monthly | Yes |
The minimum deposit is $1,000 and the maximum $5,000,000. Rates are the same whatever the amount.
Heartland’s Funding Model
1. Retail deposit funding Heartland funds its lending primarily through retail deposits: money from individual NZ savers. This is more expensive than wholesale market funding (which ANZ, ASB, and BNZ use more heavily).
2. Overhead structure Heartland has fewer branches than major banks, a leaner corporate structure, and fewer products.
3. NZX-listed As an NZX-listed company, Heartland is accountable to shareholders.
4. Niche lending focus Heartland focuses on reverse mortgages, rural lending, and SME lending.
Is Heartland Bank Safe?
Yes — within the parameters of any registered bank:
RBNZ regulation: Heartland holds a registered bank licence and meets RBNZ capital, liquidity, and risk management requirements.
Depositor Compensation Scheme: Up to $100,000 per depositor is covered by the Depositor Compensation Scheme (live since 1 July 2025, administered by the RBNZ). This is the same protection as ANZ, ASB, BNZ, Westpac, and Kiwibank.
NZX listing: As a listed company (HGH), Heartland publishes regular financial results, capital ratios, and credit quality data.
Credit ratings: Heartland’s credit ratings (Fitch or S&P) are typically lower than the major Australian-owned banks (AA−).
The practical answer: Deposits under $100,000 at Heartland have the same Depositor Compensation Scheme protection as ANZ. Amounts above $100,000 are not covered, so the credit quality difference between banks becomes more relevant for them.
Interest Payment Options
| Term | How interest is paid |
|---|---|
| 1 to 3 months | On maturity |
| 4 months or longer | Every 3 months |
| 12 months or longer, $50,000 or more (standard term deposit only) | Monthly, to a bank account, if you ask |
The Term PIE version pays interest quarterly only. The published rate is the same whichever option applies.
Tax on Heartland Term Deposits
Heartland term deposit interest is taxable income, and how it’s taxed depends on the product:
- Standard term deposit: Heartland deducts resident withholding tax (RWT) at the rate you choose: 10.5%, 17.5%, 30%, 33% or 39%, matched to your income. If you give your IRD number but don’t choose, 33% is deducted; without an IRD number it’s 45%.
- Term PIE: tax is deducted at your prescribed investor rate (PIR): 10.5%, 17.5% or 28% depending on your income. Once your taxable income is above $53,500, the top PIR of 28% is below your RWT rate (30% or more), so a Term PIE keeps more of the same interest.
If too much RWT is deducted, you get it back when IRD squares up your tax after 31 March; if too little, you may owe tax.
→ See: Resident Withholding Tax NZ and PIR Rate NZ: Which Rate Should You Use?
What a Rate Difference Is Worth
Rate gaps between banks move week to week, so compare on the day you invest (our term deposit rate comparisons list the main banks side by side). What a gap is worth is easy to work out:
On $50,000 for 6 months at Heartland’s 3.55%, interest is $50,000 × 3.55% × 0.5 = $887.50 before tax, or about $594.63 after 33% RWT. Every 0.25% of extra rate on that deposit adds $62.50 before tax (about $41.88 after 33% RWT).
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- interest.co.nz term deposits (1 to 9 months): tables of current short-term deposit rates.
- interest.co.nz term deposits (1 to 5 years): tables of current longer-term deposit rates.
- interest.co.nz term PIE rates: tables of current term PIE rates.
- The provider's own website: has its current rates, fees and full terms; these change more often than any comparison page.
- Financial Service Providers Register: shows whether a provider is registered to offer financial services in New Zealand.
Frequently Asked Questions
Has Heartland Bank ever failed? No. Heartland was formed in January 2011 from a merger of CBS Canterbury, Southern Cross Building Society, and Marac Finance (PGG Wrightson Finance was acquired later that year). The RBNZ registered it as a bank in December 2012, and it has operated without financial difficulty since.
Can I have more than $100,000 at Heartland? Yes, you can deposit any amount. Only the first $100,000 per depositor is covered under the Depositor Compensation Scheme. Deposits held at different banks are each covered up to $100,000.
Does Heartland have a savings account? Heartland offers a Direct Call account (online savings).
Are Heartland and Heartland Group Holdings the same? Heartland Group Holdings (NZX: HGH) is the listed parent company. Heartland Bank is the banking subsidiary where deposits are held.