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ANZ increases interest rates on all credit cards

Eden Radford avatar
Eden Radford
- 3 min read
ANZ increases interest rates on all credit cards

Australia’s fourth largest bank, ANZ, has today increased interest rates across all credit cards.

The interest rate for the ANZ Low Rate card is increasing 1.25 percentage points to 13.74 per cent, while all other cards’ interest rates will increase by 0.25 percentage points to 20.49 per cent.

All cards will see a 0.75 percentage point increase to the cash advance and balance transfer rates from 21.24 per cent to 21.99 per cent.

ANZ is also increasing the annual fees on three cards – its Rewards Platinum, Rewards and Rewards Travel and Adventure cards (the last two are no longer available to new customers), effective 8 November.

For the Rewards Platinum card, the annual fee will increase by $54 to $149.

ANZ credit cards: today’s interest rate changes

Old rateNew rateChangeAnnual fee
Low Rate12.49%13.74%+1.25%$0 for 1 year then $58
First20.24%20.49%+0.25%$0 for 1 year then $30
Platinum20.24%20.49%+0.25%$0 year 1, then $87 free if spend +$20K p.a.
Rewards Platinum20.24%20.49%+0.25%$95 – increasing to $149 on 8 Nov
Frequent Flyer Platinum20.24%20.49%+0.25%$425
Rewards Black20.24%20.49%+0.25%$375
Frequent Flyer Black20.24%20.49%+0.25%$425

Source: RateCity.com.au. Rates above are purchase rates. Cash advance and balance transfer rates are all 21.99%.

ANZ isn’t the only provider increasing credit card rates, despite the fact the vast majority of credit card interest rates are not tied to the cash rate.

RateCity.com.au database shows for credit card interest rates:

  • 10 lenders have increased the rates on 26 cards over the last 6 months. This includes CBA, American Express, Bankwest and now ANZ.
  • 17.01% is the average credit card purchase rate (excludes the 0% cards).
  • 25.80% is the highest credit card purchase rate from humm90.
  • 13 lenders offer credit card options under 10%.
  • Additionally, 5 lenders offer 0% credit cards, with 4 charging fees for using the card.

RateCity.com.au database shows for credit card annual fees:

  • 7 lenders have increased the annual fees on at least one card over the last 6 months. This includes CBA, Westpac, St George and HSBC.
  • $124 is the average credit card annual fee.
  • $1,200 is the highest credit card annual fee from Qantas Money.
  • 30 providers have credit cards with no annual fee.

RateCity.com.au research director, Sally Tindall, said: “ANZ has hiked credit card fees in the dead of night.”

“For some ANZ card holders, this rate rise could pass them by if they’re not paying attention,” she said.

“In the last six months we’ve seen 10 lenders hike the rates on at least one of their credit cards, while seven lenders have increased annual fees.

“This is yet another timely reminder to give your credit card a health check regardless of who the provider is.

“Add up how much you’ve shelled out in fees and interest charges over the last 12 months and compare this against the perks you’ve redeemed in this time. If these numbers don’t fall in your favour, it could be time to call it quits.

“Even if you’re coming out on top, that doesn’t mean you’ve got the right card in your wallet. With more than 180 cards in the market, chances are you can do better,” she said.

Compare credit cards

Product database updated 21 May, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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