ANZ has launched a 0% balance transfer rate for its credit cards for one year, according to updates on their website today.
This is the first time in New Zealand that 0% for credit card transfers has been offered.
ANZ's offer is a limited time 'special' that will expire for sign-ups at the end of July.
However, it is not the first time a 0% offer has been made.
ASB and Westpac both have a 0% rate for Purchases but not Balance Transfers.
The ASB offer is 0% for five months on purchases on its Visa Low Rate card. This offer expires on June 30, 2014.
The Westpac offer is 0% for six months on purchases on its Low Rate MasterCard. It is now 'for a limited time'.
Kiwibank offers a 1.99% special for both Purchases and Balance Transfers. It is has a six month limit.
These low or zero rate offers are having a significant impact because they shift consumer behaviour.
One bank we spoke to indicated that an earlier low rate promotion had a 'huge response'.
ANZ's latest offer comes as a reaction in a market where the banks are very active with very aggressive offers.
Even though some of their website promotion says it applies only to their ANZ Low Rate MasterCard, in fact their interest rate disclosures show that the 0% balance transfer rate applies to nearly all their credit cards.
It applies to transfers in to an ANZ card from any other non-ANZ Visa or MasterCard, American Express, GE CreditLine, The Warehouse Financial Services Credit and Store Cards, Q Card, Farmers Card and most other store cards.
4 Comments
Its all very confusing , we have a building boom , our TOT at 40 year highs , we have credit cards at zero%, and then we have major NZ retailers such as Postie going into Administration accoridng to the Herlad this morning .
It seems retailers have not adjusted to the new normal , I can buy a cotton work shirt in size 37 for 9 UK pounds online and the price in the mens dept. store is $60 plus .
And the UK shirt is made in China and shipped there first , then back here
Thats an amazing 300% more expensive in the store and its gone right around the globe almost twice before its gets delivered to my home
Kiwis are no longer happy being ripped off and its little wonder retialers are taking strain
Australian, USA, UK etc credit card holders have had 0% BTRs for years. Once again NZ has paid higher interest rates until today with one bank.
The next area of very high interest rates in NZ are car loan rates which charge from 15% to 28% and beyond! Car loans in USA can be 0% to 4 or 5%. No wonder we are driving 20 year old cars.
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