Non major lowers special fixed rates

by Maya Breen19 Oct 2015
TSB Bank has lowered its special fixed rates, bringing its one year term in line with those from three of the major banks.

TSB Bank’s one, two and three year special fixed rates now stand at 4.35%, 4.39% and 4.79% respectively, effective from 16 October 2015 and conditions apply, including minimum 20% equity.

Although TSB Bank’s two year special is 10bp lower than those of ANZ, ASB and Westpac, the lowest is still held by HSBC with its Special one and two year rates each at 4.25%.

TSB Bank manager of lending Phil Gerrard told NZ Adviser it’s important to match low rates to obtain the desired market share and bring in new business but also their unique ten year term offer sets them apart.

“The market is very competitive and we have market leading rates,” says Gerrard. “We also run a ten year fixed rate, which is abnormal – we’re the only bank that runs that at the moment.”

He says the ten year fixed rate of 5.75% provides people with the opportunity to fix for that full term and even if they were to switch their security they can maintain that rate for the balance on the ten years.

“We want to differentiate ourselves within the marketplace and it is quite an excellent instrument that people can use.”

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