Other banks unlikely to follow TSB
Saturday, June 20th 2009, 9:01AM
TSB Bank has put out a very sharp two-year rate of 5.99%. In normal times you would expect its competitors to follow, but this isn't normal times.
It seems the large banks are not interested in chasing new business at the moment and none have any plans to start doing so in the near term. I suspect, unless there is a big change in the market conditions, we will see very few of the traditional spring advertising campaigns.
Therefore the prospect of any price war around spring is low.
But we are in the middle of winter and it is solstice.
The lenders you would expect to compete against TSB, such as Kiwibank and BNZ are unlikely to move. BNZ is totally focused on getting money in the door, not lending it out. Kiwibank has so much new business and so many existing customers it is unlikely to match TSB.
In fact if you look at our rates table you will see Kiwibank has one of the highest two-year rates of any bank.
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