Best Bank Accounts

Updated 15 November 2019
It's very easy to switch bank accounts, so if you're unhappy with your current account, this guide outlines the best bank accounts currently available.

Summary of Best Bank Accounts
  • The general state of affairs for personal banking in New Zealand is simple
  1. Most banks offer a fee-free account,
  2. You won't earn any significant interest on a credit balance,
  3. Overdraft interest rates vary from low to high and
  4. The perks between banks are generally the same.
  • A fee-free bank account means there is no monthly service charge. Additionally, all accounts include New Zealand ATM transaction fees, internet banking and electronic statements. If you're currently paying a monthly fee for your bank account, it is time to look at other options.
  • If you want 'traditional' banking services, such as paper statements and staff assistance to pay in cheques, then most banks will charge fees. In reality, we believe most New Zealanders can have fee-free banking unless unusual circumstances arise. 
  • The biggest banking expense outside of a mortgage or credit card interest is the cost of an overdraft. Interest rates can be a drain on savings and the biggest 'non-fee' expense of a bank account. We suggest comparing banks to get the best deal any time you're thinking of changing banks. 
  • When you move banks, you'll need to make sure your direct debits, automatic payments and of course your salary payment details change. It's not as complicated as it sounds, and banks are used to dealing with it. ​

Our guide covers:
Our Best Bank Account Picks:​
Four tips for finding your best bank account

Every bank offers current accounts, but they may not be right for you. Use the tips below to find your best option:
  1. If you're often in overdraft, find the bank accounts with the lowest overdraft charges - the interest rates vary between the banks.
  2. Interest-earning accounts do exist - If you have regular levels of savings but want access to your money, a bank account that pays interest is a good idea. Very few banks offer 'good' interest rates exist, but there are exceptions. 
  3. Identify the monthly account fees right away - generally, free is best, with most free fee accounts offering the same level of benefits.
  4. Know your banking needs - if you prefer to know you work or live close to a branch, factor that into your consideration.
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Best fee-free bank accounts

Almost every bank in New Zealand offers a fee-free bank account option. You'll still pay overdraft interest and fees, as well as non-standard fees, unless otherwise stated, the accounts shortlisted below offer:
  1. No monthly account fee
  2. Free, unlimited transactions with your debit or EFTPOS card within New Zealand
  3. Free setup and processing of automatic payments and Direct debits and credits
  4. Free phone banking and banking app
Heartland Bank YouChoose 
  • Benefits: Zero set-up fees, free and unlimited withdrawals and transactions for in-store purchases with your EFTPOS card. Like all other banks, YouChoose does have fees for overseas transactions, replacement cards and recovery costs for unpaid debt.
  • Account balance interest? Yes - 1.7% p.a. on credit balances, paid monthly.
  • Overdraft available? Yes - 10% p.a., charged monthly.
  • Does the account have an app? Yes - Heartland Bank's app is downloadable for iOS (rated 4+/5) or Android (rated 4.2/5).
  • Branches? Limited - see this list for current locations
  • Know more or sign up: Visit Heartland YouChoose for more information
TSB ​Personal Account
  • Benefits: Zero setup account fees, free and unlimited withdrawals and transactions for in-store purchases with your EFTPOS card. Unlike other bank offers, staff-assisted transactions (deposits, withdrawals etc) are also free of charge.
  • Account balance interest? Yes - on balances over $10,000
  • Overdraft available?  Yes - interest rates vary, see our overdraft guide.
  • Does the account have an app? Yes - TSB's app is downloadable for iOS (rated 3.4/5) or Android (rated 3.5/5).
  • Branches? Limited - see this list for current locations
  • Know more or sign up: Visit TSB Personal Account for more information
Kiwibank Free Up
  • Benefits: Zero setup account fees, free and unlimited withdrawals and transactions for in-store purchases with your EFTPOS card.
  • Account balance interest? None.
  • Overdraft available?  Yes - interest rates vary, see our overdraft guide.
  • Does the account have an app? Yes - Kiwibank's app is downloadable for iOS (rated 3.8/5) or Android (rated 4.3/5).
  • Branches? Limited - see this list for current locations
  • Know more or sign up: Visit Kiwibank Free Up for more information
Westpac Everyday
  • Benefits: Zero setup account fees, free and unlimited withdrawals and transactions for in-store purchases with your EFTPOS card.
  • Account balance interest? None
  • Overdraft available? Yes - interest rates vary, see our overdraft guide
  • Does the account have an app? Yes - Westpac's app is downloadable for iOS (rated 2.7/5) or Android (rated 3.7/5).
  • Branches? Around 150 - see this list for current locations
  • Know more or sign up: Visit Westpac Everyday for more information
ANZ Go bank account
  • Account balance interest? None​
  • Overdraft available? Yes - interest rates vary, see our overdraft guide
  • Does the account have an app? Yes - ANZ goMoney app is downloadable for iOS (rated 4.3/5) or Android (rated 4.5/5).
  • Branches? 100+ nationwide see this list for current locations
  • Know more or sign up: Visit ANZ Go for more information​
ASB Streamline bank account
  • Account balance interest? None​
  • Overdraft available? Yes - interest rates vary, see our overdraft guide
  • Does the account have an app? Yes - ASB's app is downloadable for iOS (rated 3.3/5) or Android (rated 4.1/5).
  • Branches? 100+ nationwide see this list for current locations
  • Know more or sign up: Visit ASB Streamline for more information
 Banks with monthly fee accounts:
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Best bank accounts that pay interest on savings

Sadly, most major banks pay a paltry 0.05%, 0.10% or 0.25% on bank balances. Put simply, if you have an average of $1,000 in your current account, Westpac, BNZ and the likes will give a measly 50 cents or a dollar or two (before tax) each year. Challenger banks such as Heartland Bank offer more, in what we presume to be a drive to grow customer numbers. 

Best Option - Heartland Bank's YouChoose Bank Account - Earn 1.7% p.a. on any balance over $0

  • Benefits: Zero set-up fees, free and unlimited withdrawals and transactions for in-store purchases with your EFTPOS card. Like all other banks, YouChoose does have fees for overseas transactions, replacement cards and recovery costs for unpaid debt.
  • Account balance interest? Yes - 1.7% p.a. on credit balances, paid monthly.
  • Overdraft available? Yes - 10% p.a., charged monthly.
  • Does the account have an app? Yes - Heartland Bank's app is downloadable for iOS (rated 4+/5) or Android (rated 4.3/5).
  • Branches? Limited - see this list for current locations
  • Know more or sign up: Visit Heartland YouChoose for more information
​

Best bank accounts for overdrafts

Overdrafts are debts, and in many cases cost more than credit card debt. If you find yourself frequently overdrawn, your priority is to find a low-interest overdraft. Most banks aren't competitive with their overdraft offers, but challenger banks such as Heartland offer market-beating accounts.                                               

Best Option - Heartland Bank's YouChoose Bank Account - Pay 10% p.a. on overdraft balances

  • Benefits: Zero set-up fees, free and unlimited withdrawals and transactions for in-store purchases with your EFTPOS card. Like all other banks, YouChoose does have fees for overseas transactions, replacement cards and recovery costs for unpaid debt.
  • Account balance interest? Yes - 1.7% p.a. on credit balances, paid monthly.
  • Overdraft available? Yes - 10% p.a., charged monthly.
  • Does the account have an app? Yes - Heartland Bank's app is downloadable for iOS (rated 4+/5) or Android (rated 4.3/5).
  • Branches? Limited - see this list for current locations
  • Know more or sign up: Visit Heartland YouChoose for more information
​

5 tips when choosing a new bank

Understand the availability of branches

Despite banking moving largely online, generally, 90% of people visiting a bank do so to make a deposit, withdraw cash or pay in a cheque. If you do this regularly, you’ll need a branch that’s convenient. The challenger banks, such as Heartland, TSB, SBS and Co-Operative, offer far fewer branches than the main banks, which can be a nuisance if and when you need to visit. In saying this, main banks routinely close branches to cut costs, so branch availability is never guaranteed.
 
Research in America highlighted that bank customers were the happiest when they had access to both digital and in-branch services. While you may believe you can do everything online or over the phone, having a convenient branch for backup can make sense. 

Be aware of the overdraft fees

It has never been better for New Zealanders to get fee-free accounts – almost every bank offers them. But it’s the hidden costs such as overdraft fees and interest rates that make some ‘free’ bank accounts far less competitive than others. What matters is the interest rate and the fees. Nothing else.
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Don’t sign up for insurance products before comparing the alternatives

All too often banks promote their insurance products without encouraging shopping around. As banks are resellers from other insurers, they are often more expensive. Our insurance guides compare almost every insurance product so you can see if the bank’s quote is competitive. 

Download the bank app for easy insights into your money

The best way to manage your money is to make sure you can see how much you have. If your bank offers it, you can sign up for low-balance alerts via the app or website. 

Understand ALL of the fees you’ll pay for non-standard use

From our research:
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Frequently Asked Questions

We've listed a number of popular questions to make the decision process easier. If you're unsure about anything, ask the bank before going any further or signing up.

Can I still switch banks if I'm overdrawn?

Yes. Being in overdraft with one bank doesn't prevent you from signing up to another bank. However, if you're shifting your salary payments and direct debits to a new bank account, it is a good idea to focus on repaying the overdraft to minimise interest costs. 

Can I qualify for a 0% balance transfer credit card?

It depends on the bank offering the card - our guide to balance transfer credit cards explains what you need to know.

Can I spend on a credit card instead of withdrawing from my bank account?

Yes - many people do this daily, choosing to put expenses on a credit card and repay it at the end of the month. It's great to keep all of your expenses together, but it doesn't work if you have problems repaying the balance off in full. If you don't do this, credit card interest is incurred, and it can get expensive. Our guide to low-interest credit cards outlines some more affordable options.

Can I change the dates my bills get paid to help my money management?

It depends. For a mortgage or rent payments, talk to your bank,  landlord or property manager. Credit card due dates are usually fixed. If you are having problems paying bills on time, our debt help guide has solutions.

Can I switch banks if I have bad credit?

Yes, but each bank has its own assessment criteria. Our guide to credit scores outlines more about the process.

I applied for one of these accounts and got rejected. What can I do?

Banks usually won't disclose their application decision reasons, so your options are either apply for an account with another bank or stay with your current bank. 

How do I find my local branch?

The easiest way, beyond the bank's website, is to Google your bank's name and the area you live in. You'll get a Google map showing the branches around you as well as their opening hours.

How long does a cheque take to clear?

From the day it is paid in, usually 3-5 working days. Allow up to 5 to be safe.

What's the difference between a direct debit and automatic payment?

How long does it take for an EFTPOS card or debit card to arrive?

Among most New Zealand banks, the time is usually within five business days from the date your bank account was approved.

Are internet and mobile banking safe?

Yes - but as with anything online, protecting your details from fraud is essential. To do this:
  1. Never share or send your online/mobile banking information.
  2. If you use an app on your phone, make sure you regularly update it so that you have the latest security features.
  3. Delete any unusual emails about 'password recovery' or 'fraud alerts' - these are likely to be scams. If in doubt, contact your bank on its official number. 

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