CommBank’s interest-free credit card surges in popularity amongst millennials
In December 2020, CommBank launched its interest-free credit card Neo with the hopes of reeling in younger Aussies who feared the classic credit card.
And according to recent figures from the major bank, they’ve managed to knock that task out of the park.
CommBank found that one third of all credit card approvals in December were for the Neo interest-free credit card, while the bank notes that more than half of the card’s uptake alone, came from millennials.
A quick recap: the CommBank Neo credit card features no interest rate or late payment fees. In exchange for this, customers are charged a monthly fee based on their chosen credit limit. The credit card fees and limits are as follows:
- $12 monthly fee for $1,000 credit limit
- $18 monthly fee for $2,000 credit limit
- $22 monthly fee for $3,000 credit limit.
“It’s obvious and right to observe your traditional vanilla credit card offering is seeing some challenges at the moment,” said CBA retail banking executive Angus Sullivan.
“There has been an innovation around the way you structure (credit) … and I think Neo taps into that. It’s really easy for customers to get their head around it.”
RELATED: Are no interest credit cards worth it?
Millennials keen to adopt credit alternatives
Aside from interest-free credit cards, data has shown that Aussie millennials are also turning to Buy Now, Pay Later (BNPL) as their preferred payment choice.
In fact, according to Mozo’s Credit Card Perks and Pitfalls report, millennials represent 53% of BNPL users, while the 2019 Illion Credit Card Nation report found that this generation only make up 10% of the credit card market.
Mozo Director, Kirsty Lamont says this range of innovative payment options could be positively shaping the average millennial’s financial future.
“With the rise of neobanks and alternative payment methods, like BNPL on their side, millennials are confidently stepping into the new age of personal finance,” she said.
“BNPL has changed the face of the way we pay for goods with more than 25% of users cancelling their credit card and a further 23% saying they no longer use it.”
Want to find out how the CommBank Neo credit card stacks up to other plastic options on the market? Then make your next stop our credit card comparison tool!
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- Apply By 30 June 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
11.99% p.a.0% p.a. for 24 months and then 11.99% p.a. (2.00% balance transfer fee)$45Low 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
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Defence Bank Foundation Credit Card
Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.
Purchase rate
Balance transfer rate
Annual fee
3.99% p.a. for 6 months then 8.99% p.a.3.99% p.a. for 6 months and then 8.99% p.a.$45Foundation Credit Card
Defence Bank Low Rate Credit Card offers a 3.99% p.a. 6 month introductory rate on balance transfers, purchases and cash advances. Up to 55 days interest free on purchases.
- Purchase rate
- 3.99% p.a. for 6 months then 8.99% p.a.
- Intro purchase rate
- 3.99% p.a. for 6 months
- Balance transfer rate
- 3.99% p.a. for 6 months and then 8.99% p.a.
- Cash advance
- 8.99% p.a.
- Interest free days on purchases
- 55
- Intro fee
- -
- Foreign exchange margin
- 3.00%
- Annual card fee
- $45
- Late payment fee
- $20.00
- Cash advance fee
- 4.1
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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
13.99% p.a.0% p.a. for 28 months and then 21.49% p.a.$55Vertigo
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
- 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
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 yearLow 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
ING Orange One Low Rate Credit Card
With a low interest rate, no annual fee and, if per account, you meet the eligibility criteria, no ING International Transaction Fees when you shop overseas or online. Automatic repayments from eligible ING accounts.
Purchase rate
Balance transfer rate
Annual fee
11.99% p.a.No current offer$0Orange One Low Rate Credit Card
With a low interest rate, no annual fee and, if per account, you meet the eligibility criteria, no ING International Transaction Fees when you shop overseas or online. Automatic repayments from eligible ING accounts.
- Purchase rate
- 11.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- 11.99% p.a.
- Interest free days on purchases
- 45
- Intro fee
- -
- Foreign exchange margin
- 2.50%
- Annual card fee
- $0
- Late payment fee
- $20.00
- Cash advance fee
- 3%, Min $3.00
Read our Mozo Review to learn more about the Orange One Low Rate Credit Card
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