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Bank of Melbourne No Annual Fee Card

My rate: 
17%
 
My annual fee: 
$90
 
Price of my purchase: 
$5,000
 
offer
card features
balance transfer
purchase rate
annual fee
your savings
Bank of Melbourne No Annual Fee Card
APPLY BY 01 may 17
2 reviews
Pay no annual fee, ever.
Special 0% p.a. on balance transfers for 12 months.
0% p.a. intro rate on purchases for 6 months
Add to comparison
12 months
0% p.a.
then 20.49%
6 months
0% p.a.
then 20.49%
$0
ongoing
 
saved over 6 months

Pros & cons

What's good?

What's not so good?

No annual fee to pay from year to year.
0% p.a. on balance transfers for 12 months.
0% p.a. intro rate on purchases for 6 months
You can have 3 additional cards at no extra cost.
Pay faster at the checkout using Visa payWave.
The interest rate on purchases is quite high for a basic card.

Review

Our review of the Bank of Melbourne No Annual Fee Card

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 in emergencies, simply because it doesn’t cost you anything to hold it in reserve.

0% p.a. balance transfer for 12 months

Here is yet another tempting offer to make this card an attractive option. Transfer your unpaid balance from another card, or cards, and pay 0% p.a. interest for 12 months. If you have a card balance amounting to, say, $5,000, on which you’re currently paying interest at 20% a year, you could save $1,000 in interest. 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 a whole year. However, after the expiry of the interest-free balance transfer period you’ll be paying 20.49% p.a. 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 – 20.49% p.a. – applies to cash advances, so you can regard your card’s credit limit as an extra line of credit to call on when needed, preferably for short periods because you’ll pay daily interest on cash advances from the moment you receive them. There’s also a 2% fee payable on all cash advances, so if you withdraw $1,000 it will cost you $1,020 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.

55 days interest-free

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 the transaction.

Contactless transactions

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.

Maximum security

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. A 3% fee is added to foreign currency transactions, which is fairly standard.

Other ‘no fee’ cards to consider

There are several other ‘no annual fee’ cards available. Take a look at the Virgin No Annual Fee Credit Card, the Coles No Annual Fee MasterCard (letting you earn flybuys points), the Qantas American Express Discovery Card (Qantas Frequent Flyer points) and the American Express Velocity Escape Card (Virgin Velocity Points). 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 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. Pay your account on time to avoid interest, and there’s definitely no interest to pay on purchases during the first three months. Transfer a balance and reduce your interest bill or even earn some interest. Why not, indeed?

User reviews

4.2 out of 5.0 based on 2 reviews100% of reviewers would recommend this card.

Rates and fees
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Disclaimer: The opinions expressed about credit cards are the reviewer's alone, and do not reflect the views of Credit Card Compare or the credit card issuer. Reviews have not been approved or otherwise endorsed by Credit Card Compare.

Amazing, great service and no fees

Reviewed and recommended by Kara on 26 Aug 2016

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

Reviewed and recommended by Lewis on 03 Jul 2016

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.

Basic details

About this card

Card setup
Single
Card tier
Standard
Card type
Visa
Card use
Personal
Credit rating
Any
Gambling transactions allowed
No
Joint application
Yes
Minimum age
18 years old
Minimum income
N/A
Minimum income for pensioners
Same as standard
Pensioners
Rewards program
None
Temporary residents
Yes

Cardholders

Additional cardholders
3
Additional card fee
$0 p.a.

Credit limits

Minimum credit limit
$500
Maximum credit limit
$40,000

Repayments

Interest charged from
Purchase date
Interest free period
Up to 55 days on purchases
Minimum repayment
2%

Balance transfers

The offer

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.12 monthsNoneN/A20.49% p.a.

Balance transfers to this card

Balance transfer earns rewards
No
Balance transfer fee payment due
First statement
Balance transfer from personal loan
No
Balance transfer processing time
10 - 14 days
Interest free days with unpaid balance
0 days
Maximum balance transfer
N/A
Available to existing customers
No

Banks you can't balance transfer from

You can't balance transfer to the Bank of Melbourne No Annual Fee Card at the promotional balance transfer rate from:

  • Bank of Melbourne
  • Bank SA
  • St.George
  • Westpac

Rates & fees

Promotional interest rates

Interest ratePeriodFeeLimitRevert rate
Balance transfers0% p.a.12 monthsNoneN/A 20.49% p.a.
Purchases0% p.a.6 monthsN/AN/A 20.49% p.a.

Ongoing interest rates

MonthlyAnnually
Cash advances 1.71% 20.49% p.a.
Purchases 1.71% 20.49% p.a.

Fees

Annual fee
$0 p.a.
Cash advance fee
2%
Dishonour fee
$9
Duplicate statement fee
$7.5
Foreign exchange fee
3%
Late payment fee
$15
Over limit fee
$15
Overseas ATM balance fee
N/A
Overseas ATM withdrawal fee
$2.50
Overseas emergency card replacement fee
$52.50
Transaction verification fee
$10.5

Minimum criteria for this card

What you need before applying

Be over 18 years old
You are a resident or citizen of Australia
Earn a regular Weekly income
You have your personal details ready to complete the online application
Have not applied for multiple credit cards recently
Joint applications are allowed
Temporary residents are eligible
Age Pension, Disability Pension, Overseas Pension and Widower's Pension are acceptable.
Veteran's Pension is not acceptable.
Income from pensions is not allowed
Disclaimer: The minimum criteria pointers are intended only to be a guide. Your application may still be rejected by the bank even if you can answer 'Yes' to all the minimum criteria. The final decision regarding your application is up to the bank.

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