The Westpac Low Rate Mastercard offers two things that matter most in a safety-net credit card: no annual fee and a low interest rate. Here’s how it compares.
The Westpac Low Rate Mastercard has a $0 annual fee and a 13.9% p.a. interest rate, with no rewards. That rate is about 7 percentage points below the standard 20.95%. The BNZ Low Rate Mastercard (13.45%) has a slightly lower rate, also with a $0 fee: about $9 a year less interest on a $2,000 balance.
Westpac Low Rate Mastercard — Key Facts
| Feature | Detail |
|---|---|
| Annual fee | $0 |
| Interest rate | 13.9% p.a. |
| Interest-free period | Up to 55 days |
| Card network | Mastercard |
| Rewards | None |
| Foreign transaction fee | ~2.25% |
| Contactless / Apple Pay | Yes |
The Value Proposition
Zero annual fee combined with a rate 7 percentage points below the standard 20.95% — on a $2,000 balance, you save $140/year in interest compared to a standard card while paying nothing for the privilege.
| Balance | Standard card (20.95%) | Westpac Low Rate (13.9%) | Annual saving |
|---|---|---|---|
| $1,000 | $209.50 | $139 | $70.50 |
| $2,000 | $419 | $278 | $141 |
| $3,000 | $628.50 | $417 | $211.50 |
And because the annual fee is $0, every dollar saved in interest is a genuine gain.
Why Mastercard (Not Visa)?
Westpac issues this card on the Mastercard network rather than Visa. In NZ and internationally, both networks are widely accepted — the practical difference is minimal. Mastercard is accepted at essentially all places that accept Visa.
One minor note: some international merchants or services specify Visa only. This is rare, but a second card on the Visa network covers it.
Westpac Low Rate Mastercard vs Competitors
| Card | Annual fee | Interest rate | Network |
|---|---|---|---|
| Westpac Low Rate Mastercard | $0 | 13.9% | Mastercard |
| BNZ Low Rate Mastercard | $0 | 13.45% | Mastercard |
| ANZ Low Visa | $30 | 12.9% | Visa |
| ASB Visa Light | $0 | 13.50% | Visa |
| Kiwibank Zero Visa | $0 | 12.90% | Visa |
Key comparison — BNZ Low Rate Mastercard (13.45%) vs Westpac Low Rate Mastercard (13.9%):
On a $2,000 balance held for a year, the BNZ rate saves ~$9 more. Both are $0 annual fee. For an existing Westpac customer, that $9/year is the difference to weigh against moving to another bank. Between the two, the BNZ card has the marginally lower rate.
Features and Limitations
Features:
- $0 annual fee
- 13.9% p.a. interest rate, against 20.95% on a standard card
- Up to 55 interest-free days
Limitations:
- No rewards programme
- ~2.25% foreign transaction fee
- The BNZ Low Rate Mastercard has a lower rate (13.45%), also with a $0 fee
Using the Westpac Low Rate Mastercard as a Backup Card
Some cardholders use it this way:
- Use an Airpoints or cashback card for all everyday spending — earn rewards
- Pay the rewards card in full monthly
- Keep the Westpac Low Rate Mastercard in reserve
- If you have a month where you can’t pay in full, switch the relevant spending to the Low Rate card
Combined annual cost: $0 (assuming the rewards card pays for itself through rewards exceeding its fee).
Summary
The Westpac Low Rate Mastercard is a no-fee, low-rate card with no frills: $0 annual fee, 13.9% p.a., no rewards. If you never carry a balance, the low rate makes no difference to you. If you sometimes do, it costs about $141 a year less than a 20.95% card on a $2,000 balance. The BNZ Low Rate Mastercard (13.45%) costs about $9 a year less again on the same balance.
Where to check the latest data
Rates, fees and returns change often. Before deciding, check current figures yourself:
- interest.co.nz credit card rates: tables of current credit card interest rates and fees.
- The provider's own website: has its current rates, fees and full terms; these change more often than any comparison page.
- Financial Service Providers Register: shows whether a provider is registered to offer financial services in New Zealand.
Next Steps
- Low interest credit cards NZ: full low-rate card comparison
- No annual fee cards NZ: all $0 fee options compared
- How credit card interest works NZ — understand what the 13.9% rate means in practice
- Westpac hotpoints review — if you want rewards at Westpac