If you’ve got a big purchase coming up take a look at your budget and see if you can cover it with your savings. If that's not possible then consider your borrowing options. Before you take on any debt though, think carefully about how much you’re borrowing and if you’ll be able to comfortably make your repayments.
Take a look at your budget and see if there are places you could cut back on spending and start saving to reduce the amount you borrow. Our bills calculator can help you work out how much your regular expenses are. Building up an emergency fund can help you cope with unexpected bills or big purchases, without having to dip into debt. Every little bit helps when it comes to saving, so even if it's just a few dollars a week, see if you can start putting regular savings aside. Setting up a separate savings account can help, as it keeps your nest egg separate from your everyday account.
Depending on how much you’re looking to spend and how quickly you think you could pay it off, a low interest credit card could be a good option for making a big purchase. If you’re more interested in getting rewards than paying low interest, then take a look at our Air New Zealand Airpoints™ credit cards.
Compare interest rates and fees on our credit cards to see which one might suit you. Whatever card you choose, you need to be able to pay at least the minimum repayments each month, otherwise you’ll face extra interest and charges. At Kiwibank the minimum monthly repayment is calculated as either 5% of your closing balance or $10, whichever is greater.
If you’re looking to borrow $2,000 or more and are after a fixed interest rate and set repayment amounts, a personal loan might suit you. Once your loan is approved you can get the cash as early as the next business day. If you know how much you want to borrow, our personal loan calculator will give you an idea of what your repayments might be, how long it could take to pay off and what the total interest might be.
Interest rates will vary depending on how much you borrow. Kiwibank Home Loan customers or Graduate Pack customers are eligible for discounted personal loan interest rates. See all rates and fees.
Want to renovate your home, spruce up your kitchen, do some landscaping or go green with solar panels? You might be able to pay for it by topping up your existing Kiwibank home loan. A top-up means that you borrow money and add it to your existing home loan.
You may also be able to use a top-up to pay for a big purchase or to pay off existing debts that may be at a higher interest rate such as credit cards, personal loans and hire purchases.
The amount you could borrow will depend on how much of your home loan you’ve already paid off, the current value of your home, how much you can afford in repayments and what the top-up is for.
If you need a bit of flexibility, take a look at an overdraft. An overdraft can be accessed through your everyday account and have an agreed limit that you can spend up to whenever you need to. You only pay interest on the money you use, so if you've arranged an overdraft limit of $5,000 but only use $2,000 in a month, you only pay interest on $2,000.
There are no minimum monthly payments, but repaying it as quickly as you can will minimise the amount of interest you pay. If you’re a tertiary student, recent graduate, or you’re doing an apprenticeship you can apply for a low rate overdraft. Look at our Tertiary Pack or Graduate Pack for more details.
If you’re late paying bills or have defaulted on a loan or a credit card, this is likely to show up on your credit report. If you’ve made a few money mistakes in the past, you can start to rebuild a positive financial picture by paying your bills and loans on time, or if you’ve fallen behind in payments, setting up a regular repayment plan to get back on track.
Get an idea of what your repayments might be, how long it'll take to pay off the loan and what the total interest might be.
Compare interest rates, fees and limits on our credit cards to see which one might suit you.
Set up a savings goal in internet or mobile banking and track your progress with Goal Tracker.
Create a budget and take a look at your spending and see if there’s any way you can squeeze out some savings, so that the next time you’re hit with an unexpected expense, you can dip into savings rather than slip into debt. The general rule of thumb for an emergency fund is to aim to be able to cover around three months' worth of expenses. Our bills calculator will help you work out your expenses.
A low interest credit card could be a good way to deal with an unexpected expense. Our Low Rate Visa comes with our lowest purchase interest rate, the Zero Visa has no annual account fee, and the Platinum Visa is a low-fee card with a higher credit limit and built-in travel insurance. To pay off your balance faster, try to pay more than the minimum monthly repayments, as this will save you interest.
Work out your regular spending each month and how much you need to to cover those bills each pay.
Make sure your money is where you need it to be by automatically 'sweeping' it between accounts.
Take temptation out of your banking and automatically split your pay into different accounts before you see it.
An overdraft provides a flexible financial backstop to help you deal with unexpected expenses. Your overdraft will have an agreed overdraft limit, and you can access the overdraft through your everyday account.There are no fixed repayments and you can spend within your agreed overdraft limit.
Depending on your circumstances, a low interest credit card could be a good way to deal with an unexpected expense. Kiwibank has a range of credit cards to suit different circumstances and spending habits. Whichever card you choose, make sure you can make at least the minimum monthly repayments, to avoid extra interest and charges.
If you’re financially squeezed, take a look at your spending and see if there’s anywhere you can cut back. Our savings calculator can help you with this. We’ve also got a bills calculator to help you work out your regular expenses. This will help you create a budget and work out if you can start saving.
Work towards building an emergency fund – aim to be able to cover around three months’ worth of expenses. Consider a separate savings account that isn’t linked to your EFTPOS or debit card, and so it’s harder to dip into. Set up a direct debit or automatic payment so your savings happen automatically.
Keeping track of your spending and knowing where your money is going is a great way to get on top of your day-to-day finances. You can do this by going through your recent transactions on internet banking or the mobile app. Our bills calculator can help you work out your regular expenses – the first step in creating a budget.
Rather than have all of your money sitting in one account, consider setting up a few accounts to cater to all of your needs. For example, one for bills, one for everyday spending and one for saving. Compare the fees, interest rates and features of the accounts we have on offer to make sure you’ve got the best options for your circumstances.
Our Sweep tool is helpful if money is a bit tight and you’re worried there might be times automatic payments or direct debits might be dishonoured. With Sweep, if there’s not enough money in your transaction account for an upcoming payment, Sweep will take money from a second account (that you nominate) to cover the payment.
Credit cards are a handy way to pay for everyday things, but you need to manage them well. Ideally, you’d be able to pay off your balance in full each month – that way you’ll avoid paying interest on purchases. Plus if you take one of our Airpoints credit cards you can earn rewards on your everyday spend.
Ideally, you'll have saved an emergency fund, but if your savings can't cope with tough times or unexpected expenses, you could consider getting an authorised overdraft. You'll be given an overdraft and an agreed limit, which you can access through your transaction account. Minimise the amount of interest you pay on your overdraft by repaying it as quickly as you can.