Range of term deposit rate increases from TSB, Co-operative Bank introduces 4-month 'special'

Range of term deposit rate increases from TSB, Co-operative Bank introduces 4-month 'special'

TSB Bank has increased a range of term deposit interest rates, and the Co-operative Bank has introduced a "special, limited time" rate as banks continue to react to a rising interest rate environment.

A swathe of increases from TSB include a 45 basis points hike to its 18 month rate to 3.75% for savers with deposits of less than $5,000. That's the biggest increase among it has made.

TSB has also increased its five year rate for savers with deposits of at least $10,000 by 25 basis points to 5.75%, which matches the market leading bank rate from both ANZ and Kiwibank. TSB has also increased its four year rate by 25 basis points to 5.50%, giving it the equal highest bank rate for this term alongside RaboDirect, ANZ and Kiwibank.

Co-operative Bank, meanwhile, has introduced a 4.5% rate for four months for deposits of between $2,000 and $50,000. That's comfortably the best advertised four month rate from a bank, well ahead of the next best 4% from Westpac. Co-operative Bank's previous four month rate was 3.60%.

"Customers can open one term deposit account at a special 4.5% rate per customer for a maximum four month period. When the term deposit matures, customers can choose to reinvest the money or have it paid out to another account," Co-operative Bank says.

 The special offer doesn't, however, apply to existing deposits held with Co-operative Bank.

The Reserve Bank increased the Official Cash Rate by 25 basis points to 2.75% on March 13 in what's expected to be the first of a series of increases. Swap rates have also been on the rise. See more on banks' post OCR rate hikes here.

See all carded, or advertised, bank term deposit rates for one to nine months here, and all rates for one to five years here.