Rewards credit cards vs annual fees
Is the annual fee of a rewards credit card worth it? The answer to this question will vary from one person to another as it depends on several factors which we will go through in this guide. So before you sign your life away to a flash rewards credit card take the time to learn if it’s the best piece of plastic for you.
Want some of the best rewards deals available? Compare below. - last updated 19 March 2024
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Apply By 2 Apr 2024
American Express Qantas Ultimate Card
Qantas Frequent Flyer
$450
100,000
1.25 points up to 100,000 points/year, then
1 point uncappedReceive 100,000 bonus Qantas Points when you apply online by 2 April 2024 , are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.
CompareCompareQantas Ultimate Card
Receive 100,000 bonus Qantas Points when you apply online by 2 April 2024 , are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months. T&Cs apply. Available to new American Express Card Members only.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $450
- Bonus points
- 100,000
- Earn rate per $1
- 1.25 points up to 100,000 points/year, then
1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1.25 points per dollar on Amex, up to 100000 points per year, then
1 point per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 100,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 20010.0
- Card Benefits
- Account alerts by SMS,
Card Purchase Cover ,
Travel Inconvenience Cover
- Rewards Bonus Points
- 1.25 points per dollar on everyday purchases. Earn 0.5 Qantas Points per $1 spent at government bodies, earn 2.25 Qantas Points per $1 spend on selected Qantas products and services.Exclusions apply. After a total of 100,000 Qantas Points is earned in a calendar year, the everyday earn rate will change from 1.25 to 1 Qantas Points per $1 spent.* For Card Members who applied for the Card between 1 July 2023 – 9 January 2024, this change will come into effect from 10 July 2024.
Read our Mozo Review to learn more about the American Express Qantas Ultimate Card
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NAB Qantas Rewards Premium Card
Qantas Frequent Flyer
$250 $150 in the first year
70,000
0.66 points up to $3,000/month, then
0.33 points up to $6,000/month70,000 Bonus Qantas Points. Offer applies to a new NAB Qantas Rewards Premium Card when you spend $2,000 on everyday purchases within 60 days.
CompareCompareQantas Rewards Premium Card
70,000 Bonus Qantas Points. Offer applies to a new NAB Qantas Rewards Premium Card when you spend $2,000 on everyday purchases within 60 days.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $250 $150 in the first year
- Bonus points
- 70,000
- Earn rate per $1
- 0.66 points up to $3,000/month, then
0.33 points up to $6,000/month
- Intro rate
- -
- Ongoing Purchase rate
- 20.99% p.a.
- Balance transfer rate
- 0% p.a. for 12 months and then 21.74% p.a. (3.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 0.66 points per dollar on Visa, up to $3,000 per month, then
0.33 points per dollar on Visa, up to $6,000 per month
- Reward point expiry
- Never
- Bonus points
- 70,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 20010.0
- Card Benefits
- Concierge,
Extended Warranty,
Purchase Protection,
Travel Insurance,
Interstate Flight Inconvenience Insurance,
Rental Vehicle Excess in Australia Insurance
- Rewards Bonus Points
- Bonus points on selected Qantas products and services, including eligible Qantas flights.
Read our Mozo Review to learn more about the NAB Qantas Rewards Premium Card
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American Express Qantas Premium Card
Qantas Frequent Flyer
$249
20,000
1 point uncapped
Receive 20,000 bonus Qantas Points when you apply, are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Premium Card within 3 months of Card Membership. T&C’s apply. Available to new American Express Card Members only.
CompareCompareQantas Premium Card
Receive 20,000 bonus Qantas Points when you apply, are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Premium Card within 3 months of Card Membership. T&C’s apply. Available to new American Express Card Members only.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $249
- Bonus points
- 20,000
- Earn rate per $1
- 1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 20,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 20010.0
- Card Benefits
- Account alerts by SMS,
Card Purchase Cover ,
Travel Inconvenience Cover
- Rewards Bonus Points
- Earn 0.5 Qantas Points per $1 spent at government bodies, earn 2 Qantas Points per $1 spend on selected Qantas products and services.
Read our Mozo Review to learn more about the American Express Qantas Premium Card
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NAB Rewards Signature Card
NAB Rewards
$295 $145 in the first year
160,000
1.25 points uncapped
Earn 100,000 bonus points when you spend $3,000 on everyday purchases within the first 60 days of account opening and 40,000 bonus points when you keep your card for over 12 months (T&Cs apply). Enjoy a reduced annual card fee (from $295 to $195) for the first year. Up to 44 Interest free days on purchases (T&Cs apply). $15,000 minimum credit limit. 0% p.a. on standard balance transfer (BT) rate for 12 months (3% BT fee applies).
CompareCompareRewards Signature Card
Earn 100,000 bonus points when you spend $3,000 on everyday purchases within the first 60 days of account opening and 40,000 bonus points when you keep your card for over 12 months (T&Cs apply). Enjoy a reduced annual card fee (from $295 to $195) for the first year. Up to 44 Interest free days on purchases (T&Cs apply). $15,000 minimum credit limit. 0% p.a. on standard balance transfer (BT) rate for 12 months (3% BT fee applies).
- Rewards program
- NAB Rewards
- Annual fee
- $295 $145 in the first year
- Bonus points
- 160,000
- Earn rate per $1
- 1.25 points uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 20.99% p.a.
- Balance transfer rate
- 0% p.a. for 12 months and then 21.74% p.a. (3.00% balance transfer fee)
- Cash advance
- 21.74% p.a.
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $15.00
- Points earning
- 1.25 points per dollar on Visa, uncapped
- Reward point expiry
- 36 months
- Bonus points
- 160,000
- Sydney to Melbourne
- 15600.0
- Sydney to London
- 239200.0
- $100 Gift card
- 20410.0
- Card Benefits
- Concierge,
Extended Warranty,
Purchase Protection,
International Travel Insurance,
Interstate Flight Inconvenience Insurance,
Rental Vehicle Excess in Australia Insurance
- Rewards Bonus Points
- -
Read our Mozo Review to learn more about the NAB Rewards Signature Card
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How much is the annual fee for rewards credit cards?
Part and parcel of credit cards are fees and charges, some are avoidable while others you just can’t dodge. The annual fee for rewards credit cards is one of those ones you can’t evade! This account-keeping fee is high, and can range from $0 to $450 for platinum rewards credit cards. For example, the ANZ Frequent Flyer Black credit card has an annual fee of $425!
Most rewards cards have higher annual fees than other credit cards. For example, a low interest credit card has an average annual fee of $60. However you can avoid this charge altogether with a no fee credit card while some providers will waive the fee! Have a read of our guide on avoiding credit card fees.
4 step guide to the right rewards decision
To help you decide if you will receive maximum value from a rewards credit card follow these easy steps.
Step 1: Take the time to calculate your annual credit card spend. This can easily be done by going through a couple of monthly statements. If you spend less than around 5,000 a year on your credit card you’re unlikely to get value from a rewards credit card as the annual fee will nullify any benefits. If you’re a big, regular spender you will get value with a rewards credit card.
Step 2: Figure out your travel habits and which airline you like to fly with. If you travel regularly be it for work or pleasure then you are likely to benefit from a frequent flyer rewards card. These rewards cards come with added benefits such a free travel insurance to the annual fee may be all worth it!
Step 3: Calculate if your annual credit card spend will net enough points to pay for the annual fee OR if your travel insurance saving is greater than the annual fee.
Step 4: Banks will charge high interest rates on reward credit cards. So when it comes to rewards cards, credit debt is a no no! If you don’t pay your bill in full and carry a balance over, all those points, frequent flyer miles will be lost to paying interest. You’re better off with a low rate card. We know that choosing a rewards card isn’t easy and you want one that will offer you rewards you’re interested in. That’s why Mozo developed the Rewards Revealer Tool. Simply plug in your annual spend and we'll show you which card will give you the best rewards for your situation.
Crunching the rewards numbers: Are you suitable for a rewards card?
Once you’ve come across a rewards card you might be interested in, calculate the minimum you would have to spend to recoup the annual fee back in rewards. Is the reward of a new toaster worth the annual fee?!
Rewards credit cards are best for…
- Big spenders
- People who use their credit card regularly
- People who will pay off their bill in full and on time each month
- Those lucky people who travel frequently
- People who have a good credit rating and earn a minimum of around $35,000 per annum.
Scenario 1
Jane is a university student who is looking at getting a credit card, so she can pay for concert tickets and clothes online as well as other day to day expenses such as food and petrol. On a tight budget, Jane plugs a few figures into the Mozo budget calculator and learns she’ll spend about $10, 000 a year on a credit card. Researching rewards credit card, Jane realises she’ll only earn around $50 worth of rewards. This definitely isn’t worth it given the annual fee can be as much as $60.
Scenario 2
John is in a long distance relationship, he lives in Sydney while his girlfriend is based in Melbourne! Flying every couple of weeks to spend time with his girlfreind, John is now all too familiar with Sydney and Melbourne airport but he knows he isn’t reaping in the benefits from all the flying. John uses the Mozo rewards revealer to find a worthwhile and beneficial rewards credit card.
John’s preferred airline is Qantas and with an ANZ Frequent Flyer Platinum credit card he can earn points direct to the Qantas Frequent Flyer program. There’s no annual fee for the first year which is a bonus but then it’s $295 per annum after that. However doing the maths, John knows that with all the frequent flying he’ll be doing as well as paying for all bills and shopping with a credit card the reward points he’ll earn will outweigh the annual fee.
^See information about the Mozo Experts Choice Rewards Credit Card Awards
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