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!
Compare low rate credit cards - last updated February 27, 2021
- Apply By May 31, 2021
Bendigo Bank Low Rate Credit Card
0% p.a. balance transfer for 18 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 18 months and then 11.99% p.a. (2.00% balance transfer fee)$45CompareCompareLow Rate Credit Card
0% p.a. balance transfer for 18 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 18 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
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.$45CompareCompareFoundation 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
Read our Mozo Review to learn more about the Foundation Credit Card
St.George Vertigo
0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
Purchase rate
Balance transfer rate
Annual fee
13.99% p.a.0% p.a. for 24 months and then 21.49% p.a.$55 $0 in the first yearCompareCompareVertigo
0% p.a. for 24 months on balance transfers requested at card application. No balance transfer fee. Rate then switches to applicable variable cash advance rate. First year annual card fee waived for the first year ($55 thereafter). Available to new cards only, Eligibility criteria and T&Cs apply. Offer ends March 2nd 2021. Mozo Experts Choice Balance Transfer Credit Card Winner 2020^.
- Purchase rate
- 13.99% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- 0% p.a. for 24 months and then 21.49% p.a.
- Cash advance
- 21.49% p.a.
- Interest free days on purchases
- 55
- Intro fee
- 0.0
- Foreign exchange margin
- 3.00%
- Annual card fee
- $55 $0 in the first year
- Late payment fee
- $15.00
- Cash advance fee
- 2%, Min $2.50
Read our Mozo Review to learn more about the Vertigo
ME frank Credit Card
Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.
Purchase rate
Balance transfer rate
Annual fee
11.99% p.a.No current offer$0CompareComparefrank Credit Card
Meet Frank, a low rate credit card with up to 55 interest free days and no annual fee. If simple, hassle free spending is your goal, you and Frank might be a match made in heaven.
- 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
- 55
- Intro fee
- -
- Foreign exchange margin
- 2.30%
- Annual card fee
- $0
- Late payment fee
- $10.00
- Cash advance fee
- 2%, Min $4.00
Read our Mozo Review to learn more about the frank Credit Card
NAB StraightUp Card
$10/month - $1,000 Credit Limit
Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.
Purchase rate
Balance transfer rate
Annual fee
0% p.a.No current offer$120 $10/month - waived if no spend & no balance owingCompareCompareStraightUp Card
Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.
- Purchase rate
- 0% p.a.
- Intro purchase rate
- -
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 0
- Intro fee
- -
- Foreign exchange margin
- 0%
- Annual card fee
- $120 $10/month - waived if no spend & no balance owing
- Late payment fee
- $0.00
- Cash advance fee
- n/a
Read our Mozo Review to learn more about the StraightUp Card
^See information about the Mozo Experts Choice Credit Cards Awards
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