ANZ has announced sweeping changes to its rewards credit cards to come into effect from 28 September, three days before the RBA’s surcharge ban kicks in.
ANZ has announced changes to all of its credit cards, not just its rewards ones, which, depending on the card, include:
- Hikes to interest rates.
- Caps on how many points a customer can earn.
- Increases to cash advance rates and fees.
- Axing of, or reduction of, travel insurance cover (see below for details).
The news follows similar announcements from big banks CBA, Westpac and NAB. ANZ has also previously made changes to sign-up bonus points.
How will big bank rates and fees stack up post October?
Credit card interest rates and fees are already notoriously high, however, post-October, people who have a big bank rewards card could be looking at interest rates as high as 23.99% and fees totalling as much as $569 a year.
Big bank rewards cards rates | ||
|---|---|---|
Interest rate | Annual fee costs | |
CBA | 20.99% | $228 - $569 |
NAB | 22.49% | $195 - $449 |
Westpac | 23.99% | $250 - $450 |
ANZ | 22.49% | $149 - $425 |
Source: Canstar. Annual fee costs include annual fees, monthly fees and program card fees.
Card subsidiaries also slashing rewards perks
The big bank credit cards aren’t the only ones getting a shake-up.
To date, rate tracking by Canstar shows 12 card providers in total have announced changes in the lead-up to the RBA surcharge ban:
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ANZ rewards credit card changes – in detail
ANZ has retained the earn rates on its key rewards cards, but introduced caps that may limit the number of points customers earn.
Other key changes include an increase to the purchase rate on all but one of their credit cards, hikes to cash advance rates on all cards and changes to card insurances, including the scrapping of travel insurance on two current cards.
ANZ credit card insurance changes | |
|---|---|
Card | Key changes |
Rewards Black |
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Rewards Platinum |
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Frequent Flyer Black |
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Frequent Flyer Platinum |
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First |
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Platinum |
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Low Rate | No change to the purchase rate of 13.74%, however, cash advance and balance transfer rates are increasing. |
Source: Canstar. Note: Some cards are no longer available for sale, but existing cardholders will also see changes listed here.
Double-whammy for ANZ customers
Canstar's Data Insights Director, Sally Tindall, says, “ANZ is the last of the big four to announce exactly what its rewards program will look like after it goes under the knife as a result of the RBA’s surcharge ban.”
“Banks are actively tightening their belts before the surcharge rules change and cardholders are bearing the brunt.
“For ANZ rewards customers, it will be a double-whammy of higher interest rates and stripped-back perks.
“The cuts to travel insurance could push some people into taking out a stand-alone policy, or potentially turning their back on the card altogether.
“One small silver lining for ANZ rewards customers is that their earn rates will, at this stage, remain intact, however, anyone spending extremely large amounts on their card may find they hit the bank’s new points cap.
“If you hold a rewards card, keep a sharp eye on your inbox for any emails from your provider, and when it comes, read every line of the new fine print.
“Now’s the time to give your credit card a health check. Add up what you’ve paid in fees and interest over the last year, then work out the value of the rewards and perks you’ve actually redeemed in this time. If it doesn’t stack up, your card is already getting the better of you, even before the new changes kick in.”
