Bank of New Zealand (BNZ) is giving customers more interest, more easily, as it overhauls its savings accounts and simplifies its product range.
BNZ Executive Customer, Product and Services, Dan Huggins, says, “Savings accounts should be straight-forward and easy to understand. Customers shouldn’t need to meet certain criteria to get the maximum interest rate, so we’re doing away with bonus interest requirements and giving it to everyone.
“We are shaking up the savings market and giving all BNZ customers with Rapid Save accounts the full interest rate, including the bonus interest, regardless of whether they increase, maintain, or even decrease their balance,” says Mr. Huggins.
Today, BNZ’s Rapid Save pays a base interest rate of 0.05% p.a. and then a bonus interest rate of 0.10% p.a. if a customer maintains or increases their balance in a bank month, for a total of 0.15% p.a.
From 30 July all customers on the product will receive the full interest amount, currently 0.15% p.a.
Rapid Save has no base fee and one free transaction per bank month. To help customers reach their savings goals, customers can also set nicknames, pictures, and savings targets giving them a visual reminder of their goals and their purpose for saving.
Mr Huggins says BNZ is also taking the opportunity to simplify its product range, withdrawing its other retail savings product, Personal OnCall, which pays 0.05% p.a. regardless of balance.
“We’re simplifying saving by offering only a small set of easy-to-understand, market-leading options. Customers will have a clear choice around the products that best fit their needs,” he says.
Customers with Personal OnCall accounts will be migrated to Rapid Save, or to another product that might suit their needs better, such as BNZ’s zero-fee transactional account YouMoney.
Customers do not need to do anything, BNZ will be in touch with them directly.
- The Rapid Save rate is only available for the first $5,000,000 of total deposits held with BNZ. For amounts over $5,000,000, customers should talk to BNZ about their options.
- A “bank month” refers to the period from the last business day of the previous calendar month to the second to last business day of the current calendar month. More information and a list of the dates of bank months for 2021 is available here.
- Interest rates are accurate as of the date of the release but are subject to change.
- To help customers stay on track for their savings goals, customer receive one free withdrawal per bank month, with additional withdrawals charged at $3. BNZ automatically emails customers who withdraw on two more occasions in a bank month to let them know about they’ve been charged and to provide tips on how to stay on track and whether another product would suit their needs better.