- Consumers can cut their interest rate on outstanding balances in half by switching credit cards.
- Interest rates for some credit cards is more than 20%.
- Lower rate cards are available that are below 9.00%.
- Anyone can apply for a Defence Bank Foundation credit card and support Australia’s veterans.
Australians struggling with cost-of-living pressure can cut the interest rate on their outstanding credit card balances in half by switching cards.
An analysis of credit cards on the market finds some with rates above 20%, while other cards start with a low rate and stay low.
Defence Bank Chief Executive David Marshall said 20% is too high for a basis banking product, particularly with cost-of-living pressure rising.
“We see far too many Australians paying high interest on their outstanding credit card balances along with higher annual fees and charges.
“There is a better way to hold on to your credit card and better manage the household budget.
“It can be done without bill shock or people getting in over their heads.
“The Defence Bank Foundation Credit Card is a card with a rate that starts low and stays low.
“Since it was launched in 2020, the interest rate has stayed the same.
“It has an introductory rate of just 3.99%p.a. for six months before reverting to one of Australia’s lowest ongoing rates of 8.99%p.a.
“If you want to feel better about your finances and support Australia’s veterans at the same time, this is the credit card for you.
“Half of the annual fee goes directly to the Defence Bank Foundation, supporting Australian veterans living with post-traumatic stress disorder, by providing specially trained assistance dogs.
“Anyone can bank with Defence Bank.
“As a mutual bank our profits go back into improving the products and services for our members rather than paying dividends to shareholders, which helps us keep credit card interest rates low.”
Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.