ASB makes 3-year hero rate and offers more cash

It has taken 30 basis points off its two-year rate bringing it down to 6.19% It's not the lowest in the market with a number of the smaller banks offering rates sub-six per cent. (You can see how it compares here where we have sorted the rates table from lowest to highest on the two year term).

The real hero rate for the bank is in the three-year term. Although it has taken just three points off the rate it has turned it into a "Special" and is throwing more cash out as an incentive. The bank is offering up to $2,000 in cash contributions for new lending of $250,000 or more, as long as new security is provided too.

Also, as has become standard with Specials, the LVR in any deal has to be 80% or lower and salary needs to be credited to an ASB transaction account and an ASB credit card.

The offer also applies to Bank Direct.

The Special is a market leader (see the table sorted on three-year terms here). However, when its standard three-year rate is compared with other standard, carded rates ASB sits in the middle of the pack with other banks.