HSBC Drops Six Month Rate – Lowest Fixed Rates in Market

18 February 2011

HSBC has today announced it has dropped its six month fixed interest rate to 4.99% p.a. - a reduction of 75 basis points – if a customer takes out a home and contents insurance policy with HSBC. If they do not wish to take up the insurance offering, then the rate will be 5.49% p.a. - a reduction of 25 basis points.

If a customer were to take up HSBC’s 4.99% p.a. six month rate, over that period they could save $3,175 in comparison to the average six month fixed term rate offered by competitor banks*.

John Barclay, Head of Personal Financial Services, at HSBC says: “Since April last year HSBC has offered our HSBC Premier customers some of the lowest fixed rates in the market, and we’re looking to take an aggressive and competitive rate offering again in 2011.

“Many New Zealanders are still finding the economic climate tough and these low rates are our way of helping them increase the equity in their homes which then allows them to consider alternative investment or lifestyle options,” continues Barclay.

“In order to take up this special rate, customers will need to take out a home and contents insurance policy with HSBC, however, given the significant level of money this could save our customers we don’t anticipate this being an issue. However, if customers do not wish to take up the insurance offering, then we will offer them the still market leading rate of 5.49% p.a.,” concludes Barclay. HSBC drops six month rate – lowest fixed rates in market/2
As always, to be eligible to take up the HSBC home loan offer, customers need to qualify for HSBC Premier with either a minimum combined home loan of $500,000 or $100,000 in savings and investments.

Key benefits of HSBC Premier include a dedicated relationship manager to assist customers with their banking needs, 24/7 banking, no ATM fees anywhere in NZ or the world, access to 300 HSBC Premier Centres worldwide, uniformity of service internationally and privileges such as an additional flight luggage allowance, reduced fees on accounting services and decreased fees on wine club memberships and interior design consultations1.

From today, the current HSBC Premier fixed home loan interest rates will be:
New rates -------previous rates

6 months (including insurance policies) 4.99% 5.74%
6 months (excluding insurance policies) 5.49% 5.74%
1 year 6.24% 6.24%
2 years 6.49% 6.49%
3 years 6.99% 6.99%
4 years 7.30% 7.30%
5 years 7.59% 7.59%
Floating 6.49% 6.49%

ENDS

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