Kiwibank launches low interest MasterCard
23/05/2003
Kiwibank today launched a low interest credit card, which will operate through MasterCard.
The Kiwibank credit card has a low 12.9 per cent interest per annum, and an account fee of $19 every six months. There is no account fee if a customer has a home loan or deposits with the bank of more than $50,000. The card also provides up to 55 interest free days on purchases.
Launching the card, Kiwibank Chief Executive Sam Knowles said there had been very strong demand for a low interest credit facility that provided a fairer deal for customers.
"The low interest Kiwibank MasterCard is very competitive. The interest rate fits neatly into the bank's portfolio of products and services offering better value for New Zealand bank customers.
"More than one and a half million New Zealanders have a credit card. Most card holders pay nearly 20 per cent on their cards and our research has shown a high number are looking for an alternative. This card offers that."
Mr Knowles said the card also offers a no-fee balance transfer feature. Customers can elect to move the amount they have on their current high-interest card (subject to their Kiwibank approved credit limit) to the Kiwibank MasterCard and save on interest charges.
Kiwibank presently has 135,000 customers. The card is expected to be attractive to existing customers and to further encourage switching of accounts from other banks. A number of customers prefer to have all their accounts with the one bank and had advised Kiwibank they would wait until the credit card had been launched before switching.
The low interest Kiwibank MasterCard will be accepted by more than 116,000 New Zealand merchants, 30 million internationally and at more than 1500 ATM machines across the country.
Further information and rate and fee comparisons are available on www.kiwibank.co.nz
For further information:
Bruce Thompson,
Communications Manager
(04) 460 6831
(027) 475 3521