If you ever carry a credit card balance — even occasionally — a low interest rate saves you more than any rewards programme. Here’s how NZ low-rate cards compare.
ANZ Low Visa and ASB Visa Light both charge 12.9% p.a. — the lowest rates available from major NZ banks. The BNZ Low Rate Mastercard (13.45%) and Westpac/Kiwibank Low Rate options (13.9%) have no annual fees. If you carry a $2,000 balance, a low-rate card saves $160+ per year vs a standard card.
Why Low Interest Matters More Than Rewards
The maths is straightforward:
| Balance | 20.95% card | 12.9% card | Annual saving |
|---|---|---|---|
| $1,000 | $209.50 | $129 | $80.50 |
| $2,000 | $419 | $258 | $161 |
| $5,000 | $1,047.50 | $645 | $402.50 |
Even a premium rewards card earning $150 in Airpoints per year is a bad deal if you’re paying $419/year in interest on a $2,000 balance.
Rule: If you carry a balance for more than 1–2 months per year, a low-rate card saves more than any rewards card.
NZ Low Interest Credit Card Comparison
ANZ Low Visa — Lowest Rate Available
| Feature | Detail |
|---|---|
| Annual fee | $30 |
| Interest rate | 12.9% p.a. |
| Interest-free days | Up to 55 days |
| Minimum credit limit | $500 |
| Rewards | None |
| Cash advance rate | Check with ANZ — typically higher |
Best for: ANZ customers who sometimes carry a balance. The $30 annual fee is quickly recovered in interest savings vs a standard 20.95% card.
Break-even vs $0 fee card: You need to save $30+ in interest to justify the fee. On a $1,000 balance for 2 months, the ANZ Low Visa saves ~$16 vs a 13.9% no-fee card — almost covering the fee. Larger or longer balances make the $30 fee clearly worthwhile.
ASB Visa Light — Best Low Rate with Minimal Fee
| Feature | Detail |
|---|---|
| Annual fee | Low/check current terms at asb.co.nz |
| Interest rate | 12.9% p.a. |
| Interest-free days | Up to 55 days |
| Rewards | None |
Best for: ASB customers who want the lowest available interest rate. Check ASB’s current annual fee — it has varied.
BNZ Low Rate Mastercard — No Annual Fee
| Feature | Detail |
|---|---|
| Annual fee | $0 |
| Interest rate | 13.45% p.a. |
| Interest-free days | Up to 50 days |
| Rewards | None |
Best for: BNZ customers who want no annual fee and a low interest rate. The 13.45% rate is slightly above ANZ/ASB’s 12.9%, but the $0 fee is a genuine advantage.
Westpac Low Rate Mastercard — No Annual Fee
| Feature | Detail |
|---|---|
| Annual fee | $0 |
| Interest rate | 13.9% p.a. |
| Interest-free days | Up to 55 days |
| Rewards | None |
Best for: Westpac customers who want a no-fee, low-rate safety net card.
Kiwibank Low Rate Visa — No Annual Fee
| Feature | Detail |
|---|---|
| Annual fee | $0 |
| Interest rate | 13.9% p.a. |
| Interest-free days | Up to 55 days |
| Rewards | None |
Best for: Kiwibank customers wanting a no-frills low-rate card. Note: Kiwibank’s Zero Visa (no foreign fees) is a better choice if you also travel — but carries a higher 25.99% rate.
Summary Comparison Table
| Card | Annual fee | Interest rate | No-fee verdict |
|---|---|---|---|
| ANZ Low Visa | $30 | 12.9% | Best rate, small fee |
| ASB Visa Light | Low | 12.9% | Best rate, check fee |
| BNZ Low Rate Mastercard | $0 | 13.45% | Best no-fee low rate |
| Westpac Low Rate Mastercard | $0 | 13.9% | No fee, solid |
| Kiwibank Low Rate Visa | $0 | 13.9% | No fee, solid |
When Should You Choose a Low-Rate Card?
| Your situation | Recommendation |
|---|---|
| Always pay full balance monthly | Rewards card (you’ll never pay interest) |
| Pay full balance most months | Consider low-rate as a safety net |
| Carry a balance regularly | Low-rate card — save $100–$400/year |
| Large purchase you’ll pay off over 3–6 months | Low-rate card for that period |
| No credit history / just starting out | Low-rate card — builds history without interest risk |
Balance Transfer Offers
Occasionally, NZ banks offer balance transfer promotions — move your existing credit card balance to a new card at a lower (sometimes 0%) promotional rate for a fixed period.
Watch for: Revert rate after the promotional period — make sure you have a plan to pay down the balance before it reverts to the standard rate. Also watch for balance transfer fees (sometimes 1–3% of the transfer amount).
Next Steps
- How credit card interest works NZ — understand exactly how interest is calculated
- Best credit cards NZ — full market comparison
- Best no annual fee cards NZ — if you want $0 fees
- ASB Visa Light review — detailed review of ASB’s low rate card