Kiwibank sets new low for low rate credit cards
In a move that will shake up the New Zealand credit card market, Kiwibank today announced it will reduce the interest rates on its range of low rate credit cards.
For the first time, its lowest credit card rate is dipping below 10% and is likely to set a new benchmark low in the market.
The Low Rate card will sit at just 9.95% p.a. for purchases and cash advances and the annual fee has also been reduced to $30 p.a. from $48 p.a.
“This is the first time in many years that there’s been a significant change to credit card interest rates,” Kiwibank Chief Marketing Officer Mark Wilkshire said.
The last major change was when Kiwibank introduced the first low rate product into the market in 2002.
“With interest rates at an all-time low, reducing rates on our low rate cards is the right thing to do. This will help many of our customers, and it’s one of the many ways in which we’re committed to helping make Kiwis better off” said Mr Wilkshire.
The reduced rates apply to Kiwibank’s range of low rate credit cards from July 2019, for existing customers as well as new customers.
For customers who already have a low rate credit card, any interest charged on statements issued from July onwards will be applied at these new interest rates.
Kiwibank also announced today that it’s entering into a new, exclusive partnership with Visa to provide both its credit and debit cards.
“We believe that teaming up with Visa will allow us to deliver better innovation to Kiwis in the future” Mr Wilkshire said.
Kiwibank’s range of low rate Visa cards, which includes a new Platinum Visa, feature fresh, new native bird designs.
Customers can apply for a Visa credit card from 1 July 2019.
Existing customers do not need to do anything just yet. During the next 12 months they will be switched to a Kiwibank Visa credit card and will hear directly from Kiwibank a few weeks before receiving their new card.