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There’s more than one way to get rewards from your credit card. If collecting points is not your thing, why pay – via a high purchase interest rate and steep annual fee – for points you won’t ever use? The true rewards that come with the NAB Low Rate Card are the long zero-interest offer on balance transfers, the low ongoing purchase interest rate, the higher-than-average (for NAB) interest-free days, and the very reasonable annual fee.
0% p.a. balance transfer option for 16 months
Bring across to your new card any accumulated debt from your existing non-NAB card or cards, and take advantage of 0% p.a. interest on balance transfers for 16 months. (This is a special offer, an alternative to the standard balance transfer terms of 0% p.a. for six months.)
Balance transfers are a gift if you are an organised and disciplined credit card user, letting you use someone else’s cash for free, except for the 2% balance transfer fee. You could earn interest when you deposit into a bank account the funds you would otherwise have used to make repayments. Then pay off the balance in full at the end of 16 months in order to avoid paying the steep revert interest rate, which in this case is the cash advance rate of 21.74% p.a.
In the situation where you can’t afford to repay the balance on your existing card and need the balance transfer to help you out of temporary liquidity problems, you can save some serious money. If you transferred a balance of $5,000 from a card where the purchase rate was 20% p.a. you would save $1,149 over 16 months (even allowing for the 2% balance transfer fee), and the 2.5% minimum repayments would become really effective, reducing your debt to just $3,335.
Low 13.99% p.a. ongoing purchase interest rate
The problem with having an unpaid balance transfer on your credit card account is that you forfeit the normal interest-free days, meaning that any purchase transactions attract interest from the day they are made. So it’s best to avoid using your card for purchases while you have a balance transfer in place. However, if you find yourself in a situation where you absolutely must use the card to pay an unavoidable bill, it will be much better to pay interest at this low rate of 13.99% p.a. than at a rate of 20% p.a. or more.
Even if you don’t take up the balance transfer option, it’s possible that you will sometimes be unable to clear your purchase balance in full by the due date, or simply forget to make the payment on time. The result will be that that you will forfeit your interest-free days for the next two months. This can be painfully expensive, with standard credit card interest rates in the region of 20%. If your average monthly purchases are around $2,000, being just a couple of days late with your payment could cost you as much as $67 in interest.
However, since the NAB Low Rate Card has a much more reasonable 13.99% p.a. interest rate, your interest payment would be much lower – only $47 – in the same situation. And if you are going to have long-term credit card debt and have run out of balance transfer options, paying 13.99% p.a. instead of around 20% is going to make an enormous difference.
Extra interest-free days
One of the downsides of NAB credit cards is that the vast majority of them come with only 44 interest-free days each month. But not this one. This is one of only two NAB cards that come with Up to 55 days on purchases. (The other one is the NAB Low Rate Platinum Card.)
It may not sound like a big difference, but in fact it amounts to 132 days of extra credit each year. That’s an extra 132 days in which your hard-earned cash can remain in your savings or mortgage offset account, either earning interest or reducing your mortgage interest bill.
No points, no insurance, no frills
Bonus benefits, like frequent flyer and other reward scheme points, airport lounge passes and wide-ranging insurance cover, all come at a price. You will end up paying for them in the form of high purchase interest rates or, more likely, a high annual fee. With this very basic card, however, there’s none of this to pay for, and no complex rewards system to get your head around.
But some built-in benefits you can actually use
You will, however, receive lots of other benefits that make your card more convenient as well as more secure. You’ll be able to make contactless purchases up to $100 with Visa payWave, rely on NAB Defence to monitor fraudulent transactions, and take advantage of Verified by Visa online fraud protection service, as well as Visa Global Customer Assistance if you need emergency travel support.
Download the NAB app for more control over your card: One Touch ID lets you log in to your account with more security; you can block and unblock your card if you temporarily lose it (no need to cancel the card in this situation); you can turn payWave, online transactions and overseas transactions on and off with just a swipe; add NAB Pay for Android to your compatible phone to turn it into a Tap and Pay digital wallet.
Low annual fee
While it’s possible to argue that a 'no frills’ card like this one should have no annual fee at all, the $59 p.a. annual fee is pretty reasonable given that you get Up to 55 days on purchases on purchases each month, provided you have no unpaid balance on your account. There’s no annual fee for an additional cardholder, and you will get at least one complimentary benefit in the form of membership of Visa Entertainment’s pre-sales privileges and discounts for concerts, shows, movies and sporting events.
Other low rate cards to consider
Before you make your mind up, take a look at some competing cards with even lower purchase interest rates.
The Westpac Low Rate Credit Card Exclusive Offer has an ongoing purchase rate of 13.49% p.a. with a 24 months 0% p.a. balance transfer offer and a $59 p.a. annual fee.
The ME frank Credit Card has an ongoing purchase rate of 11.99% p.a., no zero-interest offers and $0 p.a. annual fee.
A card designed for . . .
There’s no doubt that the uncomplicated NAB Low Rate Card is aimed at balance transfer users and lower income earners (since there is no minimum income requirement and a minimum credit limit of $500). Frequent flyer and other rewards points collectors should look elsewhere, and if you expect anything other than basic Visa lifestyle benefits you won’t be impressed. But everyone, at any income or spending level, can find benefits in the combination of a low ongoing purchase interest rate (even if it’s only for when you’re forgetful) and a low annual fee.
Important information *Offer commences 1 June 2017. For approved applicants who apply for a new NAB Low Rate Card by 1 October 2017. The balance transfer interest rate will apply for a 16 month statement period from account opening. After the 16 month period, any unpaid balance transfers will attract the standard cash advance rate (currently 21.74% p.a. as at 1 June 2017). Interest rates are subject to change and available at nab.com.au.
Special promotion balance transfer must be applied for at the point of full card application. The one off balance transfer fee of 2% is calculated on the amount transferred and is charged to your NAB credit card account when your balance transfer is processed. Interest free days on purchases do not apply while you have a balance transfer. Minimum monthly repayments must be made by the due date each month. Offer is not available when closing/transferring from another NAB credit card account or in conjunction with any other NAB credit card offer or under Employees Choice.
^ After 6 months, any unpaid balance transfers will attract the standard cash advance rate (currently 21.74%p.a as at 1 June 2017). Interest rates are subject to change and available at nab.com.au. Interest free days on purchases do not apply while you have a balance transfer. Minimum monthly repayments must be made by the due date each month. The one off balance transfer fee of 2% is calculated on the amount transferred and is charged to your NAB credit card account when your balance transfer is processed. Standard balance transfer rate and term may be varied or withdrawn at any time. Not available in conjunction with the Balance Transfer Special offer.
1. Interest free days on purchases applies if you pay your account in full by the due date each month. You won’t receive interest free days on purchases if you have a balance transfer.
Credit Card Terms and conditions available here. Fees and charges are payable. Approval and credit limit is subject to NAB’s credit assessment criteria. Information, including interest rates and fees subject to change. Correct as at 1 June 2017 and subject to change. ©2017 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.
This is a super simple low rate card. It’s easy to use and won’t cost a fortune.
The application process was very easy and quick. I haven’t had any service issues either.
The app makes it easy to keep track of spending and doesn’t use much data. I definitely recommend this his card to anyone.
I have had this card for 20 years and use it for everyday purchases, but I know full well that I should have a rewards card for everyday purchases, to build up those points.
I originally had an interest rate at around 20%, but after complaining to NAB they reduced it to this low rate of around 12-13%.
This card has low interest rates, and is a great way to pay off debt quickly.
The customer service is fantastic – great guys to chat with, to make sure you’re on the right card. Branch staff are fabulous and so friendly. They greet you by name every time without fail.
I would absolutely recommend people to transfer over to this product.
The card was reliable, with a good introductory limit which I never exceeded, and it had good integration with Internet banking.
The lack of rewards was pointedly disappointing. More benefits for usage would have incentivised me to make greater use of my card. Likewise the new feature of being able to remove contactless payments on my card would have made me feel more secure in carrying my card around with me.
As a low-rate, no-frills card with limited fees for the first 18 months, it worked well for my limited needs.
A lot of monthly costs mean I am always near or over my limit, and it becomes an issue. They won’t increase my limit. I’d hoped they would increase limit by $2-3k to help me in the short term. But I like NAB as a bank, as they do help me at times. I’m hoping for a better option.
NAB’S Low Rate Card has a low interest rate on both cash advances and everyday purchases. NAB offered a generous 16 months 0% interest balance transfer that I took advantage of to move some debt from a high-rate Virgin Australia card. The kicker to this is that even after the 16 months interest-free period, the balance transfer only reverts to the low rate (12.7%). Almost all other cards revert back to a much higher rate (20-21%), so this offers me great peace of mind.
NAB’s Internet banking portal is a breeze to use, with the text size, font, and layout clear and concise. The layout is easy to navigate to the most common areas like transfers, payments, account overview and bills.
I got this credit card for the interest-free period and transferred the debt from my old card onto it. I paid it off super fast and ended up closing my old card to keep this one.
The online banking is great and I love the interest rate. I would highly recommend this card if you are looking for a simple-to-use, good value credit card.
I love this card! I switched from a high-interest card to my NAB low-interest card and have saved a ton of money. They offered me 15 months interest free on a balance transfer, which was amazing.
I would highly recommend this card to anyone who wants great rates and isn’t worried about not receiving points.
My NAB credit card is a reliable card that I can always rely on. However, I get no rewards whatsoever. I want a low rate as I am saving for a wedding and I may need to use it, which is why I applied for this card as it has 15 months interest free on purchases.
It needs rewards though.
It’s easy to apply, with fast approval and zero interest on a balance transfer. I have saved money using this card.
And I wasn’t a NAB customer before applying for this card, but that didn’t matter. The website is user-friendly and easy to navigate. I recommend this credit card to everyone.
|Interest rate||Period||Fee||Limit||Revert rate|
|Balance transfers||0% p.a.||16 months||2%||90% of credit limit||21.74% p.a.|
You can't balance transfer to the NAB Low Rate Card at the promotional balance transfer rate from:
|Interest rate||Period||Fee||Limit||Revert rate|
|Balance transfers||0% p.a.||16 months||2%||90% of credit limit||21.74% p.a.|
|Cash advances||1.81%||21.74% p.a.|