The interest free period is the maximum number of days during which interest is not charged on new purchases. If your account has an interest free period for purchases, to be entitled to that interest free period, you need to pay off the “monthly payment balance” listed on your statement of account (not the full closing balance) by the relevant payment due date.
Joint applications are limited to branch and customer care only. Currently, the bank is not accepting balance transfer requests with joint applications.
How would it feel to have an emergency line of credit in your pocket, a source of funds you could call on in a crisis, without having to pay a fee for the privilege? That’s exactly what you get with the Bank of Melbourne No Annual Fee Card.
You can make it your primary card – the one you automatically bring out of your wallet when you want to make a purchase on credit – or a secondary card to use only in emergencies, simply because it doesn’t cost you anything to hold it in reserve.
- on balance transfers for –
Here is another tempting offer to make this card an attractive option. Transfer your unpaid balance from another card, or cards, and pay no interest for a whole year. If you have a card balance amounting to, say, $5,000, on which you’re currently paying interest at 20% p.a., you could save $980 in interest. There is, however, a 1% balance transfer fee to be paid, which would reduce your savings to $930.
If you already have enough cash to repay your balance, you could still transfer it to this card and deposit the cash instead in an interest-earning bank account or mortgage offset account for -.
However, after the expiry of the interest-free balance transfer period you’ll be paying 21.49% p.a. (the ongoing purchase interest rate) if you don’t clear the unpaid amount.
Emergency line of credit
If you do plan to use it as a back-up card, it can also become a reserve line of credit. The same interest rate – 21.49% p.a. – applies to cash advances, and although this would be a painful rate to pay long term you could still use your card as an extra line of credit to call on when needed. Preferably use this facility for short periods only, because you’ll pay daily interest on cash advances from the moment you receive them. There’s also a 2% cash advance fee payable on all amounts advanced, so if you withdraw $1,000 it will cost you $1,020 even before you start paying interest.
Protection for your family
You can extend the benefit of this no-cost financial security blanket to as many as three supplementary cardholders. This makes it a great alternative if your primary card charges a fee for each additional card issued. If you have teenage children, for example, it will be comforting to know that they always have the price of a cab fare home in their pocket. Explanations can wait until morning.
Up to 55 days on purchases
Probably the best part of paying no annual fee is the fact that, provided you are in control of your finances, you get to use the bank’s money for nothing and leave your own cash on deposit for up to 55 extra days, 12 times a year. Just make sure you pay the balance owing each month, on or before the due date shown on your statement, and you will never pay any interest. The absence of an annual fee means that the Bank of Melbourne would have been justified in offering only the shorter credit term – the 44 days interest-free allowed by some competing cards – but they have chosen the more generous option.
However, if you do choose to carry an interest-free balance transfer during the introductory period, the monthly interest-free days on purchases do not apply. You will be charged the standard purchase interest rate from the date of each purchase transaction.
Goodbye PINs, hello speed and convenience. Visa payWave allows you to use this card for quick, effortless daily purchases (under $100 each). For amounts over $100 you can still use payWave, but you’ll need to enter your PIN to confirm the transaction.
The regular 24/7 Falcon Fraud Monitoring service, to detect suspicious transactions on your card, is backed up with Verified by Visa, a one-time password system delivered by SMS, when you shop online.
Online shoppers need to be aware that a 3% foreign transaction fee is added to all transactions with overseas-based merchants, but such a fee is standard for most cards.
Other 'no fee’ cards to consider
There are several other 'no annual fee’ cards available. Take a look at the following:
Whilst all of these cards have monthly interest-free periods, and many of them allow you to earn rewards points, they may tie up some of your available credit when you need it for other purposes. With the Bank of Melbourne No Annual Fee Card you can opt for a credit limit as low as $500.
Why should you choose to carry this card?
Perhaps this question would be better phrased as 'Why not?’. The card costs nothing to keep on one side for emergencies, and it doesn’t use up chunks of your credit standing. Although it comes with no rewards points, cashback or complimentary insurance, it can be a great starter card, or a permanent card if these extras are of no interest to you.
As an emergency card, it will prove its worth if your main credit card is ever lost, stolen or declined, or if your main card is an AmEx card and you’d like a backup Visa for wider acceptance. Transfer a balance and reduce your interest bill or even earn some interest. Why not, indeed?
First, the service at Bank of Melbourne is second to none. Second, the no-fee feature is a nice little bonus. Ease of use and online banking is also a plus. Hard to pass by.
I have been a loyal client and now have opened a few different types of accounts with Bank of Melbourne, and couldn’t imagine going elsewhere.
I like this card. Even though it has no frills, it suits me and works just fine with our other accounts. I have had it for years and I like it very much. Plus, there is no difficulty using it or dealing with Bank of Melbourne.
|Cash advances||1.79%||21.49% p.a.|