KiwiBank Credit Card Fee Removal Welcomed by MoneyHub
KiwiBank Fee Slash Welcomed by MoneyHub, Issuing Challenge to Other Banks to Follow Suit
KiwiBank’s decision to drop a number of credit card fees and significantly cut the price of other fees is welcomed by personal finance website MoneyHub and encourages other banks to follow suit.
MoneyHub’s Senior Researcher Christopher Walsh said:
“We’re delighted to see these
significant fee reductions, which cover anyone losing a
credit card, going over the limit, needing emergency money
overseas and many other situations”.
“We applaud KiwiBank for doing the
right thing and dumping fees that have been highly
profitable but give little or no value to the customer –
over limit fees being one example”.
“The new fees, effective 15 October
2018, see the current $52 fee for needing money overseas
without a card drop to $0. The urgent credit card delivery
fee (to a New Zealand address), currently $26, falls to
$2.60. KiwiBank has also announced that requesting a
statement copy will become free to request”.
“Only the fee for late payment
increases, from $3 to $5, while the annual fee of the
low-rate Mastercard drops from $50 a year to $48.
“MoneyHub sees this as helpful fee
cut, and we hope other banks will follow suit and give Kiwis
struggling with their credit card bills a bit more breathing
space when it comes to fees”.
“The
changes come into effect in the coming weeks, and MoneyHub
wished to publicise this fee cut to encourage other New
Zealand banks to match the KiwiBank offering and work
towards saving Kiwis money on everyday banking
fees”.
MoneyHub has updated its best credit cards and guide to credit cards to reflect the fee
changes.
Table 1 – Fees being removed altogether from 15 October 2018
Fee type | Current fee | New fee |
Over limit fee | $5 | $0 |
Statement copy fee | $5 | $0 |
Voucher copy fee | $15 | $0 |
Contact centre high use fee | Variable | $0 |
Emergency cash advance overseas | $52 | $0 |
Table
2 – Fee changes effective 15 October 2018
Fee type | Current fee | New fee |
Low Rate Mastercard account fee | $25 every six months | $24 every six months |
Domestic cash advance fee | $1 per transaction | $0.90 per transaction |
Late payment fee | $3 per late payment | $5 per late payment |
Replacement card fee | $10 per request | $9.50 per request |
Urgent card delivery fee to a New Zealand address | $25 for metro deliveries; applicable courier charges elsewhere | $2.60 per delivery |
ends