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Westpac launches zero-interest credit card: How does it compare?

·3-min read
A person pays for something with a digital card stored on their phone and the Westpac logo.
Westpac has launched its own zero interest credit card, joining CBA and NAB (Source: Getty)

Westpac has joined Commonwealth Bank (CBA) and NAB in launching its own zero-interest credit card aimed towards millennials and Gen-Z customers.

The card, like the others, has zero interest on purchases but instead charges a monthly fee if the card has been used.

However, there are some differences between all three of the zero-interest cards. Here is a comparison.

Westpac’s Flex card

  • Credit limit: $1,000

  • Monthly fee: $10 owed only if the customer has not paid the amount owing for the previous month on time.

Customers will be able to apply for the card via the Westpac banking app or online and if their application is approved, a digital card will be issued and ready to use within minutes via their banking app or mobile wallet.

In terms of security, this card’s verification code (CVC) will automatically change every 24 hours.

“We’re giving customers a new way to pay which is simple, flexible and fast, as well as a completely digital experience from start to finish,” Westpac chief executive, consumer and business banking, Chris de Bruin said.

“Flex has been designed to meet the changing needs of younger customers who want greater control over their finances and are more likely to use their smartphone to manage their money.”

CBA’s Neo card

  • Credit limit: $1,000, $2,000 or $3,000

  • Monthly fee: $12 for $1,000 limit, $18 for $2,000 limit, and $22 for $3,000 limit and will only be charged if the customer has a balance owing.

Additionally, this card does come with some rewards attached.

“Using the full power of our innovation means CommBank Neo will also offer access to discounts and cash-back offers with a range of retailers through CommBank Rewards,” Angus Sullivan, CBA executive of retail banking services said.

The rewards offer eligible customers cashback offerings from a range of retailers.

For example a customer may receive a $15 cash-back offer when they spend at one of more than 80 participating retailers.

NAB’s StraightUp card

  • Credit limit: $1,000, $2,000 or $3,000

  • Monthly fee: $10 for $1,000 limit, $15 for $2,000 limit and $20 for $3,000 limit and will only be charged if the customer has a balance owing.

NAB was the first to launch the zero-interest card, saying it was targeting buy-now-pay-later options.

The bank said the higher minimum repayment ($35 per month for $1,000, $75 per month for $2,000 and $110 per month for $3,000 limits) was a positive feature as it helped young people pay off their debts faster.

“The NAB StraightUp Card’s range of features means it is the simplest credit card offering in the market. And with many safeguards in place it can really help customers take control of their spending,” NAB executive, personal banking, Rachel Slade said.

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