CommBank Neo: CBA’s answer to buy now, pay later
Taking its cues from NAB, which rolled out Australia’s first interest-free credit card yesterday with the StraightUp credit card, CBA has announced the upcoming launch of CommBank Neo.
The CommBank Neo card will give customers up to $3,000 of credit. There are also no interest payments, no late payments, and no foreign currency fees - only a fixed monthly fee depending on your credit limit will apply.
The three credit limits with corresponding monthly fees are detailed below. However, fees will be waived for the month if the card isn’t used and you have an outstanding balance of $0 during the statement period.
- $12 monthly fee for $1,000 credit limit
- $18 monthly fee for $2,000 credit limit
- $22 monthly fee for $3,000 credit limit
CBA’s retail banking executive, Angus Sullivan said the card will be a worthwhile addition in customers’ wallets, chiefly for its simplicity and the benefits available to shoppers.
“Using the full power of our innovation means CommBank Neo will also offer access to discounts and cash back offers with a range of retailers through CommBank Rewards,” he said.
As an example, CBA said a customer can receive a $15 cash back offer when shopping at one of the 80+ participating retailers. This means cardholders can potentially recoup the cost of their monthly fee.
The foray into interest-free lending comes as scores of young consumers turn their back on traditional credit products in favour of buy now, pay later services, which allow shoppers to spread out payments for purchases over several installments.
Players like Afterpay and Zip Pay have dominated this space by offering zero-interest payment plans with the flexibility to pay off balances over time. The CommBank Neo and NAB StraightUp card signal a willingness to embrace this shift.
According to CBA, CommBank Neo will be available in late 2020. A version for business customers is also currently in the works, and will be available in early 2021.
Credit card comparisons on Mozo - rates updated daily
- Apply By 1 August 2021
Bendigo Bank Low Rate Credit Card
0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.
Purchase rate
Balance transfer rate
Annual fee
Rewards program
11.99% p.a.0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)$45-Low Rate Credit Card
0% p.a. balance transfer for 24 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.
- Purchase rate
- 11.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)
- Cash advance
- 13.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $45
- Late payment fee
- $15.00
- Cash advance fee
- 0.50%, Min $3.25
Read our Mozo Review to learn more about the Low Rate Credit Card
Bankwest Breeze Mastercard
Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.
Purchase rate
Balance transfer rate
Annual fee
Rewards program
10.99% p.a.0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)$49 $0 in the first year-Breeze Mastercard
Enjoy 0% p.a on balance transfers for 26 months (2% BT fee applies) then 10.99% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Mastercard Breeze customers only.
- Purchase rate
- 10.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 26 months and then 10.99% p.a. (2.00% balance transfer fee)
- Cash advance
- 21.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 2.95%
- Annual card fee
- $49 $0 in the first year
- Late payment fee
- $25.00
- Cash advance fee
- 2%, Min $4.00
Read our Mozo Review to learn more about the Breeze Mastercard
- Apply By 7 September 2021
Westpac Low Rate
Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.
Purchase rate
Balance transfer rate
Annual fee
Rewards program
13.74% p.a.0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)$59 $0 in the first year-Low Rate
Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter.
- Purchase rate
- 13.74% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $59 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 2%, Min $2.50, Max $150
Read our Mozo Review to learn more about the Low Rate
- Apply By 31 May 2021
Citi Simplicity
There is no annual fee ever, you'll get up to 55 days interest free, free wine when you dine with the Citi Dining Program and the convenience of worldwide acceptance with Visa and Visa payWave. Plus for the first 6 months you'll enjoy 0% on balance transfers.
Purchase rate
Balance transfer rate
Annual fee
Rewards program
0% p.a. for 6 months then 21.49% p.a.0% p.a. for 6 months and then 22.24% p.a.$0-Simplicity
There is no annual fee ever, you'll get up to 55 days interest free, free wine when you dine with the Citi Dining Program and the convenience of worldwide acceptance with Visa and Visa payWave. Plus for the first 6 months you'll enjoy 0% on balance transfers.
- Purchase rate
- 0% p.a. for 6 months then 21.49% p.a.
- Intro purchase rate
- 0% p.a. for 6 months
- Balance transfer rate
- 0% p.a. for 6 months and then 22.24% p.a.
- Cash advance
- 22.24% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.40%
- Annual card fee
- $0
- Late payment fee
- $0.00
- Cash advance fee
- 3.5%, min $3.50
Read our Mozo Review to learn more about the Simplicity
St.George Vertigo
0% p.a. for 28 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.
Purchase rate
Balance transfer rate
Annual fee
Rewards program
13.99% p.a.0% p.a. for 28 months and then 21.49% p.a.$55-Vertigo
0% p.a. for 28 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends September 28th 2021.
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 28 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55
- Late payment fee
- $15.00
- Cash advance fee
- 2%, Min $2.50
Read our Mozo Review to learn more about the Vertigo
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