CBA follows NAB with no interest credit card
Commonwealth Bank will also launch a no interest payment card for customers, branded as CommBAnk Neo and will also include rewards.
The card will be available later in the year with a similar offering for SMEs in the pipeline. CommBank Neo Business will be available in early 2021.
The lender's announcement comes a day after National Australia Bank launched its own no interest credit card.
Similar to NAB’s offering, CommBank Neo will provide customers with up to $3000 of credit, with no interest payments, no late payments, no foreign currency fees, with also a monthly fixed fee.
Unlike NAB’s flat $20 a month fee, CBA’s fee will be staggered.
A low monthly fee of $12 for $1,000 limit; $18 for $2,000 limit; and $22 for $3,000 limit.
The credit card will also offer access to discounts and cash back offers with a range of retailers through CommBank Rewards.
For example a customer may receive a $15 cash back offer when they spend at one of the 80+ retailers.
The product does not provide access to cash advances or gambling.
Customers will be refunded their monthly fee if they have no purchases in a month and the card balance is zero.
CommBank Neo features at a glance:
Three credit limits of $1,000, $2,000 and $3,000
A low monthly fee of $12 for $1,000 limit; $18 for $2,000 limit; and $22 for $3,000 limit
No late fees
No cash advances
No foreign exchange fees
No monthly fee if card is not used and the card balance is zero
Minimum repayment of $25 or 2 per cent of your closing balance, whichever is greater