Determining the best bank in NZ depends on your specific financial goals. For superior digital experiences, BNZ often leads, while Rabobank and Heartland Bank offer the most competitive high-interest savings rates. For comprehensive branch access and rewards, ANZ and ASB are top contenders. The Co-operative Bank is frequently rated highest for customer satisfaction.
Choosing a financial partner in New Zealand is no longer just about who has the most branches on the high street. With the rise of digital-first banking, competitive challenger banks, and evolving fee structures, Kiwis have more choices than ever. Whether you are looking to maximize savings interest, minimize transaction fees, or secure the best mortgage rates, understanding the nuances of the market is essential.
Which New Zealand Bank Offers the Best Everyday Accounts?
When evaluating the best bank NZ has to offer for daily transactions, the primary factors to consider are monthly account fees, transaction costs, and mobile app functionality. The market has shifted significantly towards fee-free electronic transaction accounts.
The Big Four vs. Challenger Banks
New Zealand’s banking sector is dominated by the “Big Four”—ANZ, ASB, BNZ, and Westpac. However, Kiwibank and The Co-operative Bank offer compelling alternatives.
- ANZ Go Account: This is a popular choice for those who bank digitally. It offers no monthly account fees and no transaction fees for electronic transactions. However, manual transactions in branches incur costs.
- Westpac Everyday: Similar to ANZ, Westpac has removed monthly fees from their standard everyday accounts. Their app is robust, offering features like ‘CashNav’ to track spending.
- Kiwibank Free Up: As a locally owned alternative, Kiwibank provides a solid fee-free account structure. They are often favored by those who prefer their profits to stay within New Zealand.
- The Co-operative Bank: Being a co-operative, customers are shareholders. They consistently rank high in customer satisfaction surveys and offer straightforward, low-fee everyday accounts.
Overdrafts and Hidden Fees
While monthly fees are disappearing, users must remain vigilant about overdraft fees and unarranged overdraft penalties. BNZ and ASB both offer small, interest-free overdraft buffers on certain accounts, which can be a lifesaver for avoiding dishonor fees if you accidentally dip below zero just before payday.
Who Has the Best High-Interest Savings Rates?
If your goal is wealth accumulation, your everyday transaction bank might not be the best place for your savings. The best bank in NZ for savings is often a challenger bank that operates with lower overheads.
Notice Saver vs. On-Call Accounts
To maximize returns, you generally need to sacrifice liquidity. Notice Saver accounts require you to give 30, 60, or 90 days’ notice before withdrawing funds, offering higher rates in return.
Top Contenders for Savings:
- Rabobank: Often the market leader for savings. Their PremiumSaver account rewards regular saving (increasing your balance by $50 a month) with a bonus interest rate. Since they are an agribusiness-focused bank with no retail branches for everyday banking, they pass those savings on to depositors.
- Heartland Bank: Known for aggressive interest rates on both Notice Saver and Direct Call accounts. Their digital onboarding is seamless, making it easy to open a secondary account solely for savings.
- Squirrel: While not a registered bank (they are a peer-to-peer lender and investment platform), their on-call accounts often beat the major banks, holding funds in a trust at a major bank, providing a unique middle-ground for risk and return.
Comparing Credit Card Rewards: Airpoints vs. Cashback
For many Kiwis, the “best bank” is simply the one that rewards them the most for their spending. The New Zealand credit card market is split primarily between Air New Zealand Airpoints and direct Cashback schemes.
Airpoints Cards
Air New Zealand Airpoints are the de facto currency for many travelers.
- Westpac Airpoints World Mastercard: Often cited for its high earn rate and status points, though it comes with a high annual fee.
- ANZ Airpoints Visa Platinum: A strong contender that balances earn rates with complimentary travel insurance.
Pro Tip: Always calculate the “earn rate” (how much you need to spend to earn $1 of value) and subtract the annual fee to see the true value.
Cashback Cards
Cashback offers more flexibility than Airpoints.
- BNZ Advantage Visa Platinum: Allows you to choose between Flybuys or Cashback. The cashback ratio is competitive and is credited directly to your account.
- TSB Platinum Mastercard: TSB often wins awards for this card, which offers a straightforward cashback rate on all spend, regardless of the retailer.
- American Express Airpoints Platinum: While technically an Airpoints card, Amex generally offers the highest earn rates in the market. The downside is lower acceptance compared to Visa and Mastercard, meaning you often need a backup card from a major bank.
International Money Transfers for Expats
New Zealand has a high population of expats and immigrants. If you frequently move money between NZD and other currencies (AUD, USD, GBP), relying on the major banks can be costly due to high exchange rate margins and swift fees.
Banks vs. Specialist Providers
Traditional banks (ANZ, ASB, etc.) offer convenience—you can transfer directly from your app. However, they often charge a spread of 2-4% above the mid-market rate, plus a flat fee of $15-$25 per transfer.
The Better Alternatives:
- Wise (formerly TransferWise): Highly popular in NZ. They use the mid-market rate and charge a transparent, low percentage fee. They also offer a multi-currency debit card, which is arguably the best travel money card available for Kiwis.
- OFX: Excellent for larger transfers (e.g., moving a house deposit). They offer dedicated brokers and competitive rates for high volumes.
- Revolut: A recent entrant to the NZ market, offering competitive exchange rates and a robust app experience similar to Wise.
Banking for Kids and Students
Establishing financial literacy early is crucial. The best bank for a student is one that offers leniency on overdrafts and discounts on fees.
Tertiary Student Packages
University students should look for “Tertiary Packs.” The most valuable feature here is the interest-free overdraft.
- ASB Tertiary: Offers a generous interest-free overdraft limit that increases as you progress through your degree (e.g., up to $2,000). They also provide free fries at McDonald’s occasionally via their app perks, which is a surprising hit with students.
- ANZ Jumpstart: A strong package that removes transaction fees and offers an interest-free overdraft. It applies to students and apprentices.
Kids’ Savings Accounts
For children, you want an account with no fees and a decent interest rate to demonstrate the power of compound interest.
- The Co-operative Bank Youth Accounts: consistently offer some of the best interest rates for children’s balances without demanding strict deposit criteria.
- ASB Headstart: A classic choice, integrated with the clever “Clever Kash” digital money box (a physical elephant that displays the digital balance), which gamifies savings for younger children.
Digital Experience and Customer Service
In the modern era, the quality of the mobile app is a significant differentiator. If you never visit a branch, the app is the bank.
Who Has the Best App?
BNZ is widely regarded as having the superior digital banking platform in New Zealand. Their app allows for extensive customization, drag-and-drop transfers, and excellent budget tracking tools. ASB is a close second, known for innovation (like the “Save the Change” feature).
Customer Satisfaction Ratings
According to Consumer NZ and various industry surveys, the smaller banks consistently outperform the giants in service. The Co-operative Bank and TSB frequently top the charts for customer service satisfaction. Customers appreciate the “human touch” and the ability to speak to a New Zealand-based support agent quickly.
Conclusion: Which Bank Should You Choose?
There is no single “best bank” in New Zealand, but there is a best bank for you.
- For Digital Innovation: Choose BNZ.
- For Savings Rates: Choose Rabobank or Heartland.
- For Customer Service: Choose The Co-operative Bank or TSB.
- For Branch Access & Airpoints: Choose ANZ or Westpac.
Many financially savvy Kiwis adopt a multi-bank strategy: keeping their everyday transaction account with a major bank for convenience and app features, while moving their emergency fund and savings to a challenger bank to harvest higher interest rates.
Frequently Asked Questions
What is the safest bank in New Zealand?
New Zealand’s banking system is highly regulated and stable. The major banks (ANZ, ASB, BNZ, Westpac) are Australian-owned and are subject to strict capital requirements by the Reserve Bank of New Zealand (RBNZ). While NZ does not have a government bank deposit guarantee scheme active at all times (though the Deposit Takers Act is introducing one up to $100k per depositor), the major banks maintain high credit ratings (AA- range), making them extremely safe.
Can I open a New Zealand bank account online before arriving?
Yes, most major NZ banks (ANZ, BNZ, ASB, Westpac) allow you to apply for an account online from overseas up to 90 days before you arrive. You can transfer money into the account, but you generally cannot withdraw funds until you arrive in New Zealand and verify your identity in a branch with your passport and visa.
Which bank has the lowest fees in NZ?
For everyday banking, almost all major banks now offer fee-free electronic transaction accounts (e.g., ANZ Go, Westpac Everyday, Kiwibank Free Up). The Co-operative Bank and TSB also offer competitive low-fee structures. Fees usually only apply if you require in-branch manual transactions or use an unarranged overdraft.
Is Kiwibank government owned?
Yes, Kiwibank is 100% New Zealand-owned. The ownership is held by a company called Kiwi Group Capital, which is owned by the New Zealand Government. This makes it a popular choice for Kiwis who want to ensure banking profits remain within the New Zealand economy.
What is the best bank for a home loan in NZ?
The “best” bank for a mortgage fluctuates weekly based on interest rate specials and cash-back offers. Generally, working with a mortgage broker can help you find the best deal. However, smaller banks like TSB and The Co-operative Bank often fight hard for market share with competitive rates, while the big banks may offer larger cash contributions (cashback) for new loans.
How do I switch banks in New Zealand?
Switching is relatively easy thanks to the “Payments NZ” switch service. You open a new account with your chosen bank and fill out a switch form. The new bank then contacts your old bank to transfer your recurring payments (direct debits and automatic payments) and close the old account. This process usually takes about 5 working days.