New Zealand bank raises rates despite new competition

New Zealand bank raises rates despite new competition
Tags: Bank / Credit Union
February 17, 2002

WELLINGTON, New Zealand - One of New Zealand's leading banks has responded to the launch of a rival bank in unexpected fashion by raising its ATM transaction fees.

According to the New Zealand Herald, the Bank of New Zealand plans to raise its fees for ATM transactions and electronic cash advances from 38 cents to 42 cents per transaction. Other credit card-related fees will also be raised, according to the bank.

The move, announced on Feb. 12, came less than a week after the formal opening of Kiwibank, a New Zealand government-backed bank touted as a low-fee alternative for New Zealanders. Kiwibank officials said the bank would need to attract 100,000 customers over the next three years to meet its required rate of return.