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ANZ increases interest rates on select credit cards for second time in six months

Eden Radford avatar
Eden Radford
- 4 min read
ANZ increases interest rates on select credit cards for second time in six months

ANZ, Australia’s fourth largest credit card provider, has today increased interest rates across select credit cards by 0.50 percentage points – the second hike in less than six months.

The bank previously hiked credit card rates on 7 September 2023, with a 1.25 percentage point increase on its low-rate cards, and a 0.25 percentage point rise on all other cards.

Today’s ANZ changes to credit card interest rates

Note: ANZ provides one-off annual fee waivers, cashback and / or rewards and frequent flyer points to a range of cards on sign up.

CardOld interest rateNew interest rateChange %-ptsOngoing annual fee
ANZ Low Rate13.74%13.74%-$58
ANZ First20.49%20.99%+0.50$30
ANZ Platinum20.49%20.99%+0.50$87
ANZ Rewards Platinum20.49%20.99%+0.50$149
ANZ Rewards Black20.49%20.99%+0.50$375
ANZ Frequent Flyer Platinum20.49%20.99%+0.50$295
ANZ Frequent Flyer Black20.49%20.99%+0.50$425

Source: RateCity.com.au.

ANZ not hiking in isolation

Today’s hike from ANZ comes on the back of a similar move from big bank rival, NAB, just 9 days ago in which it increased select credit card rates by 1 percentage point.

Latitude Finance also increased the rates on select cards this month by up to 0.50 percentage points. As a result, its Go Mastercard, 28 Degrees Mastercard, and Gem Visa now have purchase rates of up to 27.49 per cent.

RateCity.com.au database shows:

  • 6 lenders have increased the rates on 25 cards in the last six months. This includes CBA, NAB and ANZ.
  • 18.14% is the average rate on credit card balances incurring interest.
  • 7.49% is the lowest credit card purchase rate from G&C Mutual while 27.49% is the highest credit card purchase rate from Latitude Finance.
  • 12 lenders offer credit card options under 10% (excludes 0% interest cards which are fee-based instead).

Big four bank credit card purchase rates: how they stack up – contact us for a full comparison of cards fees and rewards

Qantas frequent flyer cards20.99%20.99%19.99%20.99%
Rewards cards20.99%20.99%19.99%20.99%
Lowest rate card13.99%13.49%9.90%13.74%
Interest-free card0% (fees instead)0% (fees instead)0% (fees instead)N/A

Source: RateCity.com.au

RateCity.com.au research director, Sally Tindall, said: “Many credit card interest rates are starting to creep up, with ANZ the latest lender to hike these rates.”

“Three of the big four banks are now charging a whopping 20.99 per cent interest on their rewards and frequent flyer cards, in a move that will catch some debt-ladened customers out,” she said.

“The latest RBA data shows Australians with credit card debt are paying an average interest rate of 18.14 per cent, yet the RateCity.com.au database shows there are 12 lenders offering credit cards with rates under 10 per cent.

“If you’re one of the millions of Australians with a credit card in your wallet or on your phone, do a quick 10-minute test to make sure you’ve got the right card for your finances.

“Signing up to a fancy rewards card might feel like winning lotto at the start, particularly if your new provider showers you in rewards points, but the longer you leave that card sitting in your wallet unchecked, the less likely you are to be getting value for money.

“Credit card companies are not charities. Yes, some people can successfully game the credit card system and come out ahead, but if you haven’t done a health check on your credit card recently, there’s every chance the system is actually gaming you,” she said.

Interest rate on credit card balances incurring interest charges: RBA

Average interest rate on credit card debt

Source: RBA.

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Product database updated 17 Apr, 2024

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