Kiwibank will reduce its interest on its Low Rate credit cards to under 10 per cent for the first time.
From July 2019 the Low Rate card will sit at 9.95 per cent p.a. for purchases and cash advances.
The annual fee will also be reduced to $30 p.a. from $48 p.a.
Kiwibank Chief Marketing Officer Mark Wilkshire said the move was the first time in many years there had been a significant change to credit card interest rates.
"With interest rates at an all-time low, reducing rates on our low rate cards is the right thing to do," Wilkshire said.
The reduced rates will apply for existing customers as well as new ones.
For customers who already have a Low Rate credit card, any interest charged on statements issued from July onwards will be applied at these new interest rates, Kiwibank said.
Kiwibank will also enter a new, exclusive partnership with Visa to provide both its credit and debit cards.
"We believe that teaming up with Visa will allow us to deliver better innovation to Kiwis in the future," Wilkshire said.
Where have the rates moved from?
• Low Rate purchase interest rate from 13.45% p.a. to 9.95% p.a.
• Low Rate cash interest rate from 22.95% p.a. to 9.95% p.a.
• Zero purchase interest rate from 16.90% p.a.to 13.95% p.a.
• Zero cash interest rate from 22.95% p.a. to 13.95% p.a.
• Gold purchase interest rate from 17.90% p.a. to 13.95% p.a.
• Gold cash interest rate from 22.95% p.a. to 13.95% p.a.