By Kylie Moss, Mozo Personal Finance Expert
Having a credit card in your wallet (and on your phone) is standard for most Aussies these days, yet surprisingly many people remain unaware of the traps of credit cards which range from confusing rewards schemes to punishing interest rates.
That’s why at Mozo, we established the Mozo Experts Choice Awards, to help Australian consumers make more informed decisions and showcase products and services in the marketplace that we believe offer exceptional value or quality to Australians each year.
For the past 5 consecutive years (2021-2025), one credit card has consistently stood out for value: the Defence Bank Foundation Credit Card. For a credit card to dominate the low-rate category for half a decade, it says something about the bank’s commitment to its members of putting people before profits, and delivering on its promise of competitive products and services.
Consistent value
The single most important factor for any credit card is the interest rate. And here, the Defence Bank Foundation Credit Card shines. Not only does it come with a 3.99% p.a.^ 6 month introductory rate on purchases, balance transfers and cash advances , the ongoing purchase rate is just 8.99% p.a, which is among the lowest we track in the Mozo database.
Compare that with the average, which currently hovers around 17% p.a according to our data. If you carry a balance month-to-month, and many Australians do, this difference is a lot of money saved in interest payments.
Also, unlike most credit card providers that charge higher interest rates for cash advances, Defence Bank offers the same low 8.99% p.a. rate for both cash advances and purchases made on the card.
Key perks
While the card’s low rates are a key drawcard, for cardholders who do make full payments each month, there’s up to 55 days interest free on purchases.
An additional card holder can also be included on the account at no extra cost. This can be helpful as it reduces fees (if you were to have separate cards) and it can also help with tracking family expenses via a single account.
Defence Bank supports all major digital wallets including Apple, Google, Garmin and Samsung and as the card operates off the Visa network it comes with worldwide access as well as 24/7 monitoring for suspicious or fraudulent activity. There are also card controls which let you enable / disable features on the spot via the Defence Bank app.
A card with a conscience
While there is a low $45 annual fee attached to the credit card, half of the fee is directly donated to the Defence Bank Foundation, whose sole beneficiary is Defence Community Dogs which provides specially-trained assistance dogs to veterans living with post-traumatic stress disorder (PTSD).
Our wrap
We love that all Australians can reap the benefits of the Defence Bank Foundation Credit Card, not only employees of the ADF. Its five-time Mozo Experts Choice Low-Rate win is testament to its enduring value and a credit card well worth considering if you value long-term savings and community support over complex rewards points.
^(credit eligibility criteria and T&Cs apply)
Rates are current and subject to change. The introductory rate is applicable for the first six months and then reverts to the ongoing rate. Current rate 3.99% p.a. six month introductory rate on balance transfers, purchases and cash advances. 8.99% p.a. ongoing rate on purchases, cash advances, unpaid balance transfers or any other outstanding balances.