ANZ cuts credit card, personal loan & overdraft interest rates

Personal Finance

ANZ NZ cutting credit card, personal loan and overdraft interest rates from April 1, although some will rise almost all the way back to where they are now in July

27th Mar 20, 2:17pm by Gareth Vaughan

Interest rate cuts against the backdrop of the coronavirus crisis are broadening with ANZ New Zealand, the country's biggest bank, cutting a range of credit card, personal loan and overdraft interest rates.

The bank says the cuts are being made because it's "working hard to support customers" as the impacts of COVID-19 (Coronavirus) continue to evolve.

ANZ is making a range of interest rate cuts that kick-in from April 1. However, some of them will then increase again from July 1.

From April 1, the purchase interest rate on the bank's low rate Visa will drop to 9.95% from 13.90% now, and the cash advance interest rate will reduce to 9.95% from 20.95% now. However, from July 1 they will increase 12.90% and 19.95%, respectively.

The purchase interest rate on ANZ's business low rate Visa drops to 9.95% from April 1 from 13.90% now, and the cash advance interest rate falls to 9.95% from 20.95% From July 1 they'll bounce back to 12.90% and 19.95%, respectively.

Both the purchase interest rate and cash advance interest rate on ANZ's Visa business airports or cashback cards drop to 9.95% from April 1 from 20.95% now. They're then set to be increased to 19.95% from July 1.

The purchase interest rate and cash advance interest rate on all the bank's other personal credit cards drop to 19.95% from April 1 from 20.95%.

Kiwibank's "low rate" credit card already has both cash advance and purchase interest rates of 9.95%, and The Co-operative Bank's "fair rate"card has cash advance and purchase interest rates at 12.95%. See all credit card interest rates here. The Official Cash Rate is now just 0.25%.

ANZ's personal loan interest rate for new loans and top ups will be 12.90% from April 1, down from 13.90%. The bank is also cutting its consumer overdraft base rate to 12.90% from 13.95% on April 1. This means with the bank's 6% margin added on, its new overdraft total interest rate will be 18.90%, and its new excess overdraft total rate will be 27.90%.

Additional ANZ credit card interest rate changes are detailed below. ANZ lending criteria, terms, conditions and fees apply.

In addition, Visa Gold, CashBack Visa Gold, Qantas ANZ Visa, Qantas ANZ Visa Platinum, ANZ Mastercard, Gold Mastercard, CashBack Mastercard, and CashBack Platinum Mastercard will have a new Purchase Interest Rate and Cash Advance Interest Rate of 19.95% p.a. Low Rate Mastercard and Freestyle Mastercard rates are also reducing, with a new Purchase Interest Rate of 12.90% p.a. and a new Cash Advance Interest Rate of 19.95% p.a.

Ezibuy’s Purchase Interest Rate will be 12.90% p.a.

From 1 April 2020, ANZ Visa Purchasing, Visa Corporate, Company Visa, and Business Preferred Mastercard interest rates will be reduced, with a new Purchase Interest Rate and Cash Advance Interest Rate of 19.95% p.a. In addition, Business Mastercard will have a new Purchase Interest Rate and Cash Advance Interest Rate of 12.90% p.a.

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15 Comments

by THE MAN 2 | 27th Mar 20, 2:26pm 1585272378

They want people to use the Visa card, so that they will make plenty when the balance isn’t repaid in full each month.
Expensive way of living!

by Pragmatist | 27th Mar 20, 2:48pm 1585273737

thats just the icing on the cake.. clipping the ticket for 1% or so on every purchase made on the credit card is their bread and butter.

by bw | 27th Mar 20, 2:43pm 1585273433

"Sky Movies were also being opened up to every customer...."
Doesn't look like that's quite right. Looks to be only those who have Sky Sport and not Movies, as a replacement.
If Sky ever had an opportunity to promote itself by opening up all of its content for those who don't have it, to sample it - this should be it!
But, alas , no.....

by BigDaddy | 27th Mar 20, 3:08pm 1585274928

The ANZ is trying to make itself look good while continuing to gouge the Public in anyway it can.
It is an absolute disgrace that their "new" interest rate on Visa card is only 9.95% ( read 10% ) .
In the guise of being charitable they will continue to rip off all and sundry just because they can, while getting billions of virtually free money from the Government.
They just don't get it.
We are facing the biggest financial crisis since 2008 ( or 1987, or 1975, or 1966, or 1929 take your pick) and they still can't help themselves. While tens of thousands of hard working Kiwis go the wall, they have the luxury of being too big to fail.

by Zack Brando | 27th Mar 20, 3:38pm 1585276718

Personal responsibility is a thing.

by MisterB | 27th Mar 20, 5:29pm 1585283375

In what way is it gouging? Most people dont pay interest on their cards, since they pay off in full. Many banks have a low rate card with no fees at all.

9.95% for an unsecured debt doesnt seem excessive - remember there are plenty of write offs, fraud related and because customers dont want to pay them back; and as mentioned plenty of customers use cards borrowing money but paying when due up to 55 days later... at 0%. What would you have the rate be?

by Palmtree08 | 28th Mar 20, 2:41pm 1585359713

Gouging it is! The commenter is no doubt referring to the Merchant service fees. Kind of
free money for the bank and a tax on every business that accepts credit cards!

by MisterB | 30th Mar 20, 2:36pm 1585532210

Nothing the commenter put in referred to merchant service fees -- which are not paid by the shopper directly. The article (which evidently you didnt read) and the comment relates to customer interest rates on unsecured lending.

Im also not sure MSF is free money. There are expenses out of that - like scheme fees, plastic, rewards etc. Unlike other countries like Oz, there is a 100% free option of EFTPOS.

Now, I am not an ANZ apologist, nor even an ANZ customer (I was, but didnt use my account so they closed it without telling me, nice eh). But my hammered Kiwisaver is probably exposed to bank stocks somewhere. It's important to understand that unsecured lending is risky stuff. That has to be priced for. The main cost is NOT the cost of borrowing (whether that's at OCR or not) it's the cost of capital [RWA on CC is much higher than a home loan), write offs, fraud.

by Palmtree08 | 28th Mar 20, 2:42pm 1585359733

Gouging it is! The commenter is no doubt referring to the Merchant service fees. Kind of
free money for the bank and a tax on every business that accepts credit cards!

by Smalltown | 27th Mar 20, 3:45pm 1585277109

Listen all I want from Cruella is the same $4,000,000 bung she gave Hisco. That's all, what's the issue there, NZ said it was OK.?

by J.C. | 27th Mar 20, 4:01pm 1585278108

I like that name Cruella. I know it's just a joke, but there is something about the banking top brass that seems to border on sociopathic.

by Smalltown | 27th Mar 20, 5:10pm 1585282220

Its actually the name ANZ staff use behind her back. These are the same staff that go to the slammer if 20 grand is missing from the accounts. How do you think they feel about Hiscos bung and the faulty valuation?

by RickStrauss | 27th Mar 20, 6:49pm 1585288140

Out of curiosity...are there any good reasons why a company selling someone a house for way under market value would not be considered taxable income/benefits?

by SmoKey | 27th Mar 20, 7:13pm 1585289621

What is the justification for charging interest on further purchases when the previous month's balance is not paid in full ? All the banks follow this insidious charge. That is the killer, really. One pays high for using the card as well as for carrying over the balance. Double whammy. The Commerce Commission and Fair Trading Act should look into this serioiusly.

by MisterB | 30th Mar 20, 2:38pm 1585532288

You mean other than the fact the bank has lent you the money, which it paid to borrow?