Cash-back credit cards 'can save Aussies money'

By Mozo ·

Australians can use cash-back credit cards to save money while spending, it has been claimed.

A post on the Money AU blog observed that savers can currently benefit from high rates on term deposits which are well above the official cash rate of 4.25 per cent.

However, it added that for people who want to make savings while having easy access to their funds at the same time, a cash-back credit card is a good idea.

The blog noted that the card issuer will typically offer a cash-back rate of around one per cent to shoppers who use the card with participating retailers. Aussies seeking better returns on their spending may decide to compare credit cards in search of the best reward schemes.

"The big advantage is cash back spending is tax free, so if you live in a place where the bank rates are puny, and a one per cent cash-back rate is competitive relative to the interest on your savings," added Money AU.

Meanwhile, a recent report by Your Money revealed that the majority of banks do not currently display cash advance fees on credit cards to ATM users.

This article is brought to you by Mozo – Helping you compare credit cards
ADNFCR-1761-ID-19718128-ADNFCR