Big banks not competitive on credit card interest rates
CONSUMERS could save as much as 10% on credit card interest by taking their business away from Australia's big four banks, new research has found.
The Choice research, released on Tuesday, found that despite record low interest rates, ANZ, CBA, NAB and Westpac were still charging credit card holders about 20% interest on cards.
It also found that of a "top 20 cards on the market" list it created, none of the largest banks in the country had a single product on the list.
Choice media head Tom Godfrey said even "low interest" cards offered by the big banks, with interest rates at about 14%, were still "a long way from the best deals on offer".
"According to the RBA, in August 2014 the average high-rate credit card charges 19.75%, while the best rate on offer is 8.99% through Community First McGrath Pink Visa and low-rate visa," he said.
"Victoria Teachers Mutual Bank Visa Platinum, Maritime, Mining and Power Credit Union Visa and Bank Mecu then come in at 9.99%, 10.12% and 10.14% respectively."
The consumer advocacy group advised consumers to check their card's interest rates and consider switching to one with a better rate, less fees or better conditions.
- APN NEWSDESK