TSB launches a raised 18 month term deposit offer among two other rate adjustments, one up, one down. It is the fourth bank to move this month

Update: TSB have now advised that the rate sheet they sent on which this story is based had a typo. Their 18 month rate is 3.65% and not 3.75% as originally reported in this story. Further update: We have removed F&P Finance from the table in this story as its owners are closing its deposit program.

There has been a steady stream of relatively minor tweaks and rate re-positioning from banks recently for their term deposit rate cards.

And the latest one is from TSB.

But this one elevates its 18 month rate to a market-leading level.

The new rate is 3.65% 3.75%, matching that offered by Chinese bank ICBC, but better than all its more usual rivals.

This is a +10 bps rise.

It is a new level that handily beats the 18 month rate for each of the five main banks. And it also tops offers from challenger banks like RaboDirect, Heartland and SBS Bank. It adds to market leading rate positions for its two, three, four and five year term deposit rates.

Also up is their one year rate to 3.40%, but that level is nothing special for this term.

But they trimmed their nine month rate to 3.35%, a drop of -5 bps.

These changes come after ASB's Monday revisions.

They also come as wholesale rates remain very stable for these durations.

Underlying wholesale rates have not been rising recently. In fact, they have pretty much trended down since the beginning of 2017.

For higher rates, you need to assess the offers of institutions with a lower credit rating. Rate offers rise significantly from non-bank institutions with sub-investment grade ("junk") credit ratings.

Using our deposit calculator to figure exactly how much benefit each option is worth you can assess the value of more or less frequent interest payment terms, and the PIE products, comparing two situations side by side.

All carded, or advertised, term deposit rates for all financial institutions for terms of less than one year are here, and for terms of one-to-five years are here.

Term PIE rates are here.

The latest headline rate offers are in this table.

for a $25,000 deposit	Rating	3/4 mths	5/6/7 mths	8/9 mths	1 yr	18 mths	2 yrs	3 yrs
Main banks
	AA-	3.00	3.30	3.40	3.40	3.50	3.65	3.80
	AA-	3.00	3.35	3.40	3.45	3.60	3.80	3.90
	AA-	3.00	3.25	3.30	3.50	3.60	3.70	3.90
Kiwibank	A	3.00	3.30	3.35	3.50		3.75	3.85
	AA-	3.00	3.30	3.35	3.40	3.50	3.70	3.80
Other banks
	BBB	2.95	3.20	3.50	3.60	3.65	3.80	4.00
	BBB	3.10	3.45	3.60	3.60	3.70	3.80	3.85
HSBC Premier	AA-	2.50	2.80	2.80	2.90		2.90	3.00
ICBC	A	2.95	3.25	3.55	3.35	3.75	3.85	3.95
	A	3.00	3.35	3.35	3.40	3.70	3.85	3.95
	BBB	3.30	3.30	3.50	3.70	3.65	3.85	4.00
	A-	3.00	3.30	3.35	3.40	3.65	3.85	4.05
Selected fincos
	B*				5.00	5.30	5.70	5.80
Liberty Finance	BBB-	3.60	3.95	4.25	4.30	4.35	4.40	4.45
UDC	BBB	3.00	3.50	3.75	3.80	3.75	3.85	3.85
	* = these credit ratings in this review that are not investment grade.

Rates in this table are the highest offered by each institution for the terms listed. You however will need to check how often interest is credited or paid. That important factor is not filtered in the above table and rates with various interest payment/credit arrangements are mixed here. However, our full tables do disclose the offer basis.

Our unique term deposit calculator can help quantify what each offer will net you.