Competitors show hands before Kiwibank launch

By KEVIN TAYLOR

Just two days before Kiwibank launches its products, two banks have announced competing accounts - a low-fee account and a children's account.

But ANZ and WestpacTrust denied that their new products were a response to Kiwibank's impending arrival.

The Government-backed Kiwibank will issue details of products and services tomorrow and open its first branches next week.

WestpacTrust said yesterday that it was offering a new account with a 15c eftpos transaction fee. It would also apply that fee to the bank's main existing transaction account, called Active, for which the eftpos fee is now 35c.

Spokeswoman Jane Anderson said it was the cheapest eftpos fee on any account in the country.

She denied that it was a response to Kiwibank, saying eftpos was used so much now that economies of scale had allowed the cheaper transaction charge.

She admitted, though, that WestpacTrust was keen to show its hand before Kiwibank's launch.

ANZ yesterday offered a children's account for those under 12 with no transaction or monthly base fees. The account had the highest interest-earning potential in the market, the bank said.

The head of metrobanking, Judy Whiteman, said Beanstalk set more realistic savings targets for children, rewarding them with a tiered interest structure.

"Beanstalk recognises that children are important customers who will grow financially if they are taught good savings habits at a young age," Ms Whiteman said.

ANZ spokesman Steve Fisher denied that the account was a specific response to Kiwibank.

"It's really looking to the future. It's a market we think is key," he said.

Last month ANZ launched Connect 10, which it said was a low-fee account offering 10 free electronic transactions a month.

The bank also denied that was a response to Kiwibank. Kiwibank external relations manager Bruce Thompson said yesterday that Kiwibank would have a children's account, but he would not give details.

"We will have a very competitive and very interesting offer."

WestpacTrust general manager of marketing Tim Harrington said the bank had carefully assessed consumer behaviour, and it was clear that for many eftpos was the preferred method of payment.

"For some people there's still an apprehension about the cost involved. We want to reduce that concern by ensuring our customers can use the service as cheaply as possible."

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