Heartland Bank Review — Online Savings and Term Deposits

Heartland Bank is a New Zealand-owned bank that specialises in savings accounts, term deposits, and niche lending. It does not offer everyday transaction accounts with debit cards or overdrafts. It is not a full-service bank in the way ASB or Kiwibank are. What Heartland does offer is some of the most competitive savings and term deposit rates in the country, delivered through a straightforward online platform.

Heartland's model works well as a complement to an everyday transaction account at another bank. You keep your spending money and bill payments at your main bank, and you keep your savings and term deposits at Heartland for the higher rates. The two accounts are linked by an automatic payment or manual transfer when needed.

Savings Accounts

Heartland's Online Call account pays competitive unconditional interest with no monthly fees and no minimum balance. The rate is consistently among the best on-call rates available in New Zealand. Interest is calculated daily and paid monthly. The account can be opened entirely online in a few minutes with identity verification through your NZ driver's licence or passport.

The Heartland Direct Call account offers a higher rate than the standard Online Call account for customers who are comfortable managing the account entirely online with no paper statements. The rate difference reflects the lower operating cost of the paperless service. The Direct Call account has the same no-fee, no-minimum structure as the standard Online Call account.

Heartland's Notice Saver accounts offer higher rates for money that can be committed for a fixed notice period. The 90-day notice account pays a higher rate than the 60-day or 30-day options. The notice period means you cannot access the money on demand — you must give 90 days' notice before a withdrawal. The higher rate compensates for the reduced flexibility. Notice Saver accounts are suitable for medium-term savings goals where the timeline is known in advance.

Term Deposits

Heartland's term deposit rates are consistently competitive across all terms from thirty days to five years. The rates are published on the Heartland website and change with market conditions. Term deposits can be opened and managed entirely online. The minimum deposit for a term deposit is modest and the maximum is high, making Heartland suitable for both small and large term deposit investments.

Interest on term deposits can be paid at maturity or at regular intervals — monthly, quarterly, semi-annually, or annually. The interest rate is slightly lower if you choose regular interest payments compared to compounding the interest at maturity. The choice depends on whether you need the interest as income or want to maximise the total return through compounding.

Heartland automatically notifies you when a term deposit approaches maturity, along with the current rates for all available terms. You can reinvest into a new term deposit online with a few clicks. The interest from the maturing deposit can be paid to your nominated bank account or reinvested with the principal.

Who Heartland Suits

Heartland Bank is the best choice in New Zealand for a dedicated savings or term deposit account. The rates are consistently among the most competitive. The online platform is simple and functional. The lack of transaction banking with a debit card is not a limitation because Heartland is designed to work alongside a transaction account at another bank. For savers who want the best possible rates on their savings and term deposits and are comfortable managing the account online, Heartland Bank is one of the top options in the country.

For customers who want a single bank for everything — transaction account, savings, and lending — a full-service bank like ASB, Kiwibank, or BNZ is a better fit. But for the savings and term deposit component of your banking, Heartland's combination of competitive rates, no fees, and a simple online platform is hard to beat.

Safety and Security

Heartland Bank is a registered bank in New Zealand, licensed by the Reserve Bank of New Zealand. Deposits are covered by the New Zealand Deposit Takers Act deposit insurance scheme, which protects deposits up to a legislated amount per depositor per institution. This means your savings and term deposits with Heartland are protected in the unlikely event the bank fails. The deposit insurance applies to all licensed banks in New Zealand and provides the same level of protection as other banks.

Heartland's online platform uses standard banking security — two-factor authentication, encryption, and fraud monitoring. Account access is protected by password and two-factor authentication for transactions. Heartland does not offer telephone banking for transactions, which reduces the risk of phone-based fraud. All account management is done through the secure online platform or mobile app.

Lending Products

While Heartland does not offer everyday transaction accounts, it does offer lending products. Heartland provides residential mortgages, reverse mortgages, business loans, and asset finance. The reverse mortgage product — Heartland's Home Equity Release — allows homeowners aged sixty or over to access the equity in their home without selling. The loan is repaid when the home is sold or the borrower passes away. This product is one of Heartland's specialist offerings and is relevant for older New Zealanders who are asset-rich but cash-poor.

Heartland's residential mortgage rates are competitive with the major banks. The online mortgage application process is straightforward. Heartland offers fixed-rate and floating-rate home loans with similar features to the major banks. The main difference is that Heartland does not offer an offset account or revolving credit facility, which limits flexibility for borrowers who want those features.