BNZ and Kiwibank increase long term TD rates

Besides the magnitude of the changes there is another factor which makes the battle intriguing.

Yesterday's increases were to longer term rates, an area banks traditionally find it hard to raise funds in.

In recent weeks most of the competitive pricing changes have been to terms in the four to nine month part of the market.

BNZ changed its rates for three, four and five year term deposits, along with its bonds. The largest increases were to four-year rates which went up a full 75 basis points.