ASB has raised its nine month term deposit rate back to 4.6%, while SBS Bank has made changes to its special rates in the latest round of an intensifying battle for local term deposits. The Reserve Bank has told the major banks they need to raise more funds from local depositors which has seen a new price war initially among the four to nine month market and last week in the longer term deposit market.

The move by SBS saw it introduce a special nine month rate of 4.5% as well as a new three year rate of 5.75%, currently the highest three year rate offered by a bank in New Zealand with interest paid at maturity. At the same time, SBS lowered its special three to six month rates by 60 basis points to 4%.

SBS also raised its one year mortgage rate from 5.7% to 5.8%.

See all the latest term deposit rates offered for terms less than one year here, and one year and greater here.