Internet-based BankDirect is taking advantage of its lower overheads to scrap bank fees.
The catch is that customers will need to have at least $5000 in their cheque accounts.
The bank abolished fees on its High Interest Cheque Account yesterday. Customers will no longer be charged transaction fees or base fees and will be paid a 4.35% pa rate of interest, as long as they maintain the minimum balance of $5000.
BankDirect general manager, Jane Freeman says the move on bank charges follows widespread consumer demand for a better deal from banks in general.
"As a relative newcomer, operating with far lower overheads, BankDirect is perfectly positioned to offer New Zealanders a better deal. We are determined to make banking more affordable - this initiative is just the start."
Freeman says the move to scrap banking charges is part of the bank's new innovations to be announced as BankDirect's second anniversary approaches in early October.