Internet And Mobile Banking In New Zealand: The Most Common Rates And Features

Almost everyone does internet banking these days. You’ve probably done it at least once, but do you know the fees that come with it? Are you fully utilising all the right features that you can do with it?

More commonly referred to as online banking, it offers a convenient way to do daily transactions such as online shopping, bills payment, bank transfers, among many other things! During its early days, online banking can only be done through the bank’s website. These days, it's a lot more convenient because of banks' mobile banking apps.

Internet banking is quick, straightforward, and involves just a few clicks on your smartphone, tablet, or computer. Luckily, leading banks — including ANZ, Kiwibank, BNZ, ASB, and The Co-operative, among others — now offer online banking. Even smaller rural banks develop their designated apps to make transactions easier for their customers.

What can you do with online banking?

Internet banking is all about convenience. It’s no wonder that they have plenty of commands you can do in just a few simple clicks. Aside from using it for your daily transactions, you can also do the following:

• Checking your balance any time of the day
• Transferring money to other bank accounts
• Paying off your mortgages, loans, and savings
• Setting up direct debits and direct deposits
• Linking any investments to your accounts
• Checking your transaction history any time

Is online banking secure?

One of the biggest concerns of online banking is security. It's not just your personal data but your hard-earned money that's also at risk. The great news is, internet and mobile banking are generally safe. As long as you observe all the habits and practices, you don’t have to worry about security and privacy.

Banks know how important your data and money are, so they also ensure the highest security measurements in your account. They usually encrypt their websites with plenty of authentication processes. Once your session is finished, most banks don’t keep your data.

As a rule of thumb, always follow these practices before banking online:

• Turn on notifications whenever there are unusual log-ins
• Activate multi-factor authentication for advanced security
• Don’t share your login credentials even with the bank
• Only access your banking account using a secured wifi
• Update the operating system and security patches of your device
• Use a very strong password and don’t reuse from other accounts

To activate a secured internet banking account, you can set up your account directly. Simply download and install the app or access it directly from the bank’s website. Otherwise, you can visit your local bank to help you with setting up your account for a small fee.

What are fees associated with internet banking?

It depends. Different banks have varying fees depending on what they see fit for their business. Usually, banks don’t charge you whether you use an internet or mobile banking app, especially if it's an on-us transaction. Ultimately, they decide the fees based on your bank account type.

If your bank account charges you a maintenance fee, then expect maintenance fees to reflect in the app as well. The same thing applies to overdraft fees, interest charges, and more. Take a look at the most common bank account types and their associated fees.

Everyday accounts

Everyday bank accounts have a very basic purpose — for your daily needs like groceries, transportation, food, and more! Most banks either charge you a monthly base fee, transaction fee, or a combination of both. 

Savings accounts

Savings accounts aim to help you save. That’s why most banks have no maintenance fees for your account. However, most banks charge withdrawal fees with interest rates, which can be charged flat and tiered. Banks also often give bonus incentives if you haven’t withdrawn anything from your account for a certain period.

Student accounts

Student bank accounts are targeted at tertiary students to help them save for the future. These have little to no fees — be it credit, debit, or interest-free overdraft account. Most banks have this neat feature where you can freeze the interest on your overdraft. Although, do note that these overdraft interests are also likely to end when you graduate.

Superannuitant accounts

Leading banks offer superannuitant accounts with no maintenance fees or transaction fees. These are ideal if you have NZ Super or pension paid into the account. Although, banks still charge penalties as well as service charges if you incur them.

There are plenty more accounts that other leading banks offer. Consult them for whatever fees are associated with your bank account. Nonetheless, watch out for dishonour fees or penalties, including late payment fees for credit cards. Some banks may also charge interbank transaction fees.

What can you do to avoid these fees?

Of course, no one wants to pay these charges as much as possible. Luckily, you can avoid these extra charges if you know how to manage your bank account properly. Do note that while these practices are general, these may still vary per bank.

Keep your transactions in check

If your bank account type has a daily transaction limit, make sure to spend only within this ceiling. Otherwise, you may have to pay high fees and interests. Also, some online retailers may have additional fees for using your bank account for transactions. Always remember this before checking out your cart.

Use the internet and mobile banking as much as possible

Usually, banks charge a certain fee when you do your transactions at the bank. Since you already have an account for internet and mobile banking, use it. It’s free for most transactions. Leading banks are also updating their apps to include more features, so you never have to go to the bank for most of your transactions.

Switch to a better bank account type for your needs

Internet and mobile banking can only do so much. Ultimately, most of the charges are still linked to the type of account you have. If you pay some fees using an EFTPOS account and you can avoid it using a credit account, then get a credit card. Make sure to get the best bank account type for your needs.

Get the best bank account for your needs by comparing your needs right here at glimp. We list different account types from the leading banks in New Zealand, so you can always find the best one for you.

Use glimp’s free comparison tool to get customised results within just a few minutes.