Powered by MOMENTUM MEDIA
the adviser logo
Lender

Bank releases ‘rate tracker’ credit card

by Reporter4 minute read
Rate tracker

A non-major bank has launched a “ground breaking” credit card whose interest rate is tied to the official cash rate, meaning that customer’s interest rate would only change if the Reserve Bank moves the cash rate.

Following off the back of its RBA Rate Tracker Home Loan, Auswide Bank has now released a Low Rate Visa credit card which comes with a floor rate of 7.95 per cent per annum, plus the percentage of the official cash rate.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Given that the cash rate has been held at its record low level of 1.50 per cent for the past two years (however, RBA governor Philip Lowe has said recently that the next movement in the cash rate would be an increase, should the economy strengthens and income growth and inflation lift), this would mean that customers would be charged an annual interest rate of 9.45 per cent.

Auswide Bank added that should the cash rate ever reach 0 per cent or below, the credit card floor rate of 7.95 per cent would apply.

Advertisement
Advertisement

The agreed rate would apply to both purchases and cash advances.

The card also comes with an annual fee of $50 per year, which is waived for those under the age of 25.

According to the bank, the “unheard of” rate tracker feature would provide customers with “certainty”, as they would know when (if at all) their rate would change.

Chief customer officer Damian Hearne commented: “In a crowded credit card environment, it was very important for us to consider how our card would compare and rate against others in the market place.

“We think our Low Rate Visa credit card is superior in rate and also offers certainty to customers across Australia who are looking to manage their finances more affordably.”

Mr Hearne added that given the launch of the bank’s rate tracker home loan, it believed that “with a similar feature for credit cards, that this will prove highly popular”.

[Related: Australia’s ‘first’ rate tracker mortgage launches]

Bank releases ‘rate tracker’ credit card
percentage
TheAdviser logo
percentage

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

mark pesce futurist ajxjkn

Automation is changing, not replacing, the role of finance brokers

On Thursday (4 August), the Australian Financial Review (AFR) ran a story with the headline: “Finance brokers top...

READ MORE
des hang carbar zaheer jappie carclarity ta qtvnqr

CarClarity confirms partnership with car subscription platform

Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different...

READ MORE
anthony albanese profile ta vtpifc

Further grants confirmed for flood survivors, $47m pledged

According to a statement released by the federal government, the Back Home grant will be made available to impacted...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more