Three banks reduce charges

Three of the country's major banks have promised they will not charge customers for using each other's automatic teller machines.

The BNZ, National Bank and ASB Bank have challenged their two competitors to do the same.

But the ANZ and WestpacTrust will continue to charge their customers 50c a transaction for using rivals' machines.

WestpacTrust said its 485 machines were the country's biggest network. Other banks had not matched this costly investment. The ANZ said it had the second-highest number, and few customers needed to use rivals' machines.

Meanwhile, WestpacTrust's floating home loan rate for new loans will drop by 0.3 per cent to 8.5 per cent per annum from tomorrow.