Competition heats up in the credit card market with BNZ reducing most of its balance transfer rates to 1%

Today, BNZ reduced its balance transfer rate on amost its credit card products to 1% for 12 months.

This matches a previously announced balance transfer rate on the new HomeAdvantage credit cards.

The previous balance transfer rate was 3.99%, and this rate was reduced just last week from 8.95%.

At the expiry of the 12 months, the rate reverts to between 12.95% and 19.95% depending on the card program you are on. Cash Advance rates are even higher.

However there are exceptions in the BNZ portfolio: the balance transfer rate for Fly Buys Visa and MasterCard remains at 3.99% pa for 12 months.

Other banks have adopted a 1% rate in New Zealand, including Westpac. Westpac's rate is also limited to 12 months, or you can choose a 5.95% rate for the balance transferred 'permanently'.

These rate offers come as New Zealanders are increasing their use of credit cards, with balances outstanding for both personal and business cards now exceedint $6 billion for the first time ever.

(In other markets, balance transfer rates have fallen to zero in some cases.)

A comprehensive list of all credit card rates, including the teaser 'balance transfer' rates, along with related card fees, is available here.