The 1-year fixed rate reaches a new low

Close up of hand holding scissors, cutting white paper

The China Construction Bank has announced a new record-low rate of 2.80% for 1 year. This is 0.35% lower than their previous 1-year fixed interest rate.

This puts them in the position of having the lowest rate in the market, overtaking HSBC’s 2.95% and Heartland Bank's 2.89% 1-year fixed rates.

Will the big five banks follow suit with a cut of their own?

We know that the bigger banks who operate differently from the likes of CCB and HSBC will never match these rates, but we should expect to see some movement as we move closer towards Covid Alert Level 2.

Our prediction is potentially a 2.99% or 2.95% for 1-year. Watch this space.

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