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CBA launches new no-interest credit card
As younger Australians continue to choose buy now, pay later services over debt-accruing products, Australia’s largest bank has launched a no-interest credit card.
CBA launches new no-interest credit card
As younger Australians continue to choose buy now, pay later services over debt-accruing products, Australia’s largest bank has launched a no-interest credit card.
For a monthly fee ranging between $12 and $22, CBA’s new Commbank Neo card will have credit limits of $1,000, $2,000 and $3,000 with no interest and no late or currency conversion fees.
This follows the announcement from National Australia Bank (NAB) who launched the “first” no-interest credit card in Australia on Thursday, 10 September.
CBA’s group executive of retail banking, Angus Sullivan, said the card offers consumers certainty and control over their spending.
“We are really excited to launch our simple, easy to understand product, which we believe offers great value to our customers,” Mr Sullivan said.
Rate City’s research director, Sally Tindall, said these new cards signal that it’s game on between the big banks and buy now, pay later services.
“Hopefully, this competition will bring more low-cost, consumer-focused credit options to the table,” she said.
While CBA’s card is eerily similar to NAB’s, aside from the small variation in monthly fees, there are two key differences.
“The main difference between the two cards is NAB is asking customers to pay back more of their debt each month, which will see them clear it faster,” she said.
“The second difference is CBA offers shopping perks, but only if customers spend at certain stores.
“Customers should be wary: if they start buying things in a bid to claw back their monthly fee, then they’ve probably had.”
Ms Tindall expects the other major banks to also take on the buy now, pay later sector.
“At this rate, Westpac and ANZ will have interest-free cards on offer before the weekend’s out,” she concluded.
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