Ask Miles: Can I transfer money from my credit card into my bank account?

Ask Miles: Can I transfer money from my credit card into my bank account?

Can I transfer money from my credit card into my bank account?


Answer

You're basically doing a cash advance.

Although common overseas, the practice of transferring the "money" or "credit limit" available on your credit card to your bank account is not as widely used here due to banking restrictions and the fees associated with it. 

While it is possible for you to transfer money from your credit card to a bank account online or over the phone, in Australia, not all banks will allow it and this type of transaction is usually treated as a cash advance. 

Here's a list of credit cards providers that allow money transfers to bank accounts:

ANZ
Bank of Melbourne 
Bank SA
Bendigo Bank

HSBC
NAB
St. George
Suncorp
Westpac

Importantly, on cash advances or on any cash equivalent transactions you won't receive any interest-free days. This means the transaction will automatically attract the cash advance interest rate (usually 20% p.a.) and a one-off cash advance fee (usually around 3%). 

Most credit cards, especially those issued by the Big Four banks, also charge a very high interest rate for cash advances. Typically this rate will be even higher than the rate charged for unpaid purchase balances, and it will often fall in the range 21%-22%p.a.

Since this is a cash advance transaction, most banks will only allow you to transfer a portion of your available credit limit.

Availability

If you transfer the money to the same bank, the funds should be available within a day. If you transfer to a different bank, the transfer will usually take about 2-3 business days to be completed.

Another option for faster access to funds is to withdraw cash from the credit card, then deposit it into your bank account.

Cards

You might consider cards that offer low rates on cash advances:

ME frank Credit Card

- No annual fee.

- Low 11.99% p.a. rate on cash advances & purchases

- Cash advance fee $4 or 2% (whichever is greater)


ING Direct Orange One Credit Card

- No annual fee.

- Low 11.99% p.a. rate on cash advances & purchases

- Cash advance fee $3 or 3% (whichever is greater)


NAB Low Rate Business Card

- No annual fee first year

- Low 13.25% p.a. rate on cash advances & purchases

- Cash advance fee $2.50 or 2% (whichever is greater)


Ask Miles - Have a question for Miles and his customer service team? Start a Live Chat right now or leave a message.

Disclaimer

The products, banks and companies mentioned in this Ask Miles question and answer were correct at the time of publishing. The information published is general advice only and should not be taken as specific personal finance advice.

Comments