Quick Verdict: The ASB True Rewards Mastercard offers solid value for moderate spenders with its low annual fee and bonus earning categories. Best suited for those who spend significantly on groceries, petrol, and utilities.
Key Features at a Glance
Rewards Program
- • 1 point per $1 on groceries, petrol & utilities
- • 0.5 points per $1 on all other purchases
- • Points can be redeemed for cash, travel, or merchandise
- • No minimum redemption amount
Fees & Rates
- • Annual fee: $50
- • Purchase rate: 21.95% p.a.
- • Foreign transaction fee: 2.5%
- • Cash advance fee: $7 or 3%
Detailed Review
Rewards Earning Potential
The ASB True Rewards Mastercard's strength lies in its targeted bonus categories. Earning 1 point per dollar on groceries, petrol, and utilities can add up quickly for typical households. Based on average New Zealand spending patterns, a family spending $200 weekly on groceries, $150 monthly on petrol, and $300 monthly on utilities could earn approximately 1,800 points monthly just from these bonus categories.
Annual Earning Example
- Groceries: $10,400 × 1 point = 10,400 points
- Petrol: $1,800 × 1 point = 1,800 points
- Utilities: $3,600 × 1 point = 3,600 points
- Other spending: $6,000 × 0.5 points = 3,000 points
- Total: 18,800 points (~$188 value)
Annual Fee Analysis
At $50 annually, this card requires relatively modest spending to break even. With bonus categories earning 1 point per dollar (roughly 1% return), you need only $5,000 in annual bonus category spending to offset the fee. This makes it accessible for most households, unlike higher-fee premium cards that require substantial spending to justify their cost.
Interest Rates and Fees
The 21.95% purchase rate is competitive among New Zealand rewards cards. While not the lowest available, it's reasonable for a rewards-earning card. The 2.5% foreign transaction fee is standard but worth considering if you frequently travel or shop internationally.
Redemption Options
ASB offers flexible redemption through their True Rewards program:
- Cash back: Direct credit to your account (best value)
- Travel: Flights and accommodation bookings
- Merchandise: Electronics, homewares, and gift cards
- Donations: Charitable contributions
Additional Benefits
While this card focuses on rewards rather than premium perks, it does include:
- Mastercard's standard purchase protection
- Extended warranty coverage
- Travel accident insurance (when ticket purchased with card)
- Access to Mastercard's concierge services
Who Should Consider This Card
Ideal Candidates
- Moderate spenders: Those spending $10,000-20,000 annually who want rewards without high fees
- Category bonus enthusiasts: High spenders on groceries, petrol, and utilities
- ASB customers: Existing relationship holders seeking integrated banking benefits
- Rewards beginners: Those new to rewards cards wanting a low-risk entry point
Less Suitable For
- High spenders: Those who could benefit more from premium cards with better earning rates
- Frequent travelers: Limited travel benefits and foreign transaction fees apply
- Low spenders: May struggle to offset the annual fee
- Rate-sensitive users: Other cards offer lower interest rates
Comparison with Alternatives
vs. ANZ CashBack Visa
ANZ CashBack offers 1% on all purchases with no annual fee, but lacks the category bonuses. ASB True Rewards is better for high grocery/petrol spenders, while ANZ suits those wanting simplicity without fees.
vs. Kiwibank Airpoints Card
Kiwibank focuses on Airpoints earning for travel, while ASB offers more flexible cash rewards. Choose based on whether you prefer travel rewards or cash flexibility.
Application Process
Applying for the ASB True Rewards Mastercard is straightforward:
- Check eligibility requirements (18+, good credit history, minimum income)
- Complete online application or visit ASB branch
- Provide income verification and identification
- Wait for credit assessment (typically 7-10 business days)
- Receive card and activate to start earning rewards
Approval Tips
- • Maintain a good credit score (aim for 600+)
- • Have stable employment and income
- • Keep existing credit utilization below 30%
- • Consider becoming an ASB customer first for better approval odds
Maximizing Your Rewards
Strategic Spending Tips
- Consolidate bonus categories: Use this card exclusively for groceries, petrol, and utilities
- Pay bills via credit card: Utilities and other recurring expenses earn bonus points
- Choose grocery stores wisely: Ensure your preferred supermarket counts as "groceries"
- Monitor spending: Track bonus category purchases to maximize earning potential
What Counts as Bonus Categories
Understanding merchant coding is crucial:
- Groceries: Supermarkets, but not department stores with grocery sections
- Petrol: Service stations, but not discount retailers selling fuel
- Utilities: Power, gas, water, telecommunications
Potential Drawbacks
Limitations to Consider
- Foreign transaction fees: 2.5% adds cost for international spending
- Lower earning on general purchases: Only 0.5 points per dollar outside bonus categories
- Annual fee breakeven: Requires consistent spending to justify the cost
- Limited premium benefits: Lacks travel insurance and lounge access
Final Verdict
The ASB True Rewards Mastercard strikes a solid balance between earning potential and affordability. Its $50 annual fee is easily justified for households with significant spending in the bonus categories, and the flexible redemption options provide genuine value.
This card works best as part of a multi-card strategy, handling grocery, petrol, and utility expenses while pairing with a no-fee card for general spending. For ASB customers seeking their first rewards card or existing rewards users wanting better category earning, it represents excellent value.
Bottom Line
Best for: Moderate spenders with high grocery/petrol expenses seeking affordable rewards
Skip if: You're a light spender, frequent traveler, or prefer no annual fees
Overall rating: 4.2/5 - Solid value proposition with targeted rewards earning