Teachers Mutual Bank has reduced its two-year fixed rate from 4.83 per cent to 4.67 per cent.
The new rate is a temporary offer that covers applications between August 7 and September 7.
It comes with a free 90-day lock and a 100 per cent offset facility.
Teachers Mutual’s national manager of third-party distribution, Mark Middleton, said the bank wanted to stand out from the raft of lenders that have been cutting their five-year rates.
“We would like to approach the market differently to our competitors, so we’ve gone with the two-year rate,” he told The Adviser.
“We’ve had specials with the three-year rate, but we haven’t done a lot with the two-year rate, so we wanted to test the market and see what sort of reaction we get.”
[Related: New offset account covers all products]