We're changing the way we calculate credit card interest
New legislation has been passed that will change the way we calculate interest on ‘purchases’ for consumer credit cards with interest free days from 1 January 2019.
WHAT’S CHANGING?
From 1 January 2019, members who do not pay the full closing balance shown on their credit card statement will only be charged interest on their purchase balance from the day after the due date shown on their statement.
HOW THIS CHANGE MAY AFFECT YOU?
The new way of calculating interest on purchase balances will affect members in different ways.
- If you’re already paying interest on an existing purchase balance, this change will not immediately impact you. You’ll continue paying interest as you do today until you pay the full closing balance as shown on your credit card statement by the due date; therefore, regaining the benefit of interest free days.
- If you pay your credit card balance in full every month by the due date, you’ll continue to pay no interest on your purchases balance.
- If you happen to miss a full payment and pay interest on your purchase balance, this will affect you. However, the good news is that this change may mean that you’ll pay less interest as you will generally only be charged interest on your purchase balance from the day after the due date shown on your statement.
WANT TO FIND OUR MORE?
For more information on the new interest calculation method you can call us on 1300 13 23 28 or email us at service@australianmilitarybank.com.au. Remember, paying your credit card bill on time and in full each month will help you avoid late payment fees and minimise interest costs.
FAQs
What is a purchase balance?
A purchases balance is the total amount of outstanding on a credit card account relating to credit provided in respect of purchases, together with certain fees, interest charges and other charges.
How is interest calculated today?
For a full description of how interest is calculated today, please refer to the Low Rate Visa Credit Card Terms and Conditions on australianmilitarybank.com.au.
Does the Interest-free period automatically apply when you open a new account?
You get a fresh start with interest-free on purchases when you open a new credit card account. The interest-free period applies up to and including your first due date when an amount is payable as well as if by that due date you also pay the closing balance of your previous statement in full, up to and including the next due date.
Can I restart my Interest-free period automatically when you pay your entire account balance in full?
If at any time you pay the entire outstanding balance of your account, you get interest-free on new purchases starting on the day of the payment and continuing until the due date that falls in the next statement period. As a reminder, your account balance is available in Internet and Mobile Banking, or by contacting us. Please note a payment is applied on the date we process it, which may be later than when you made it (for example, if you use another bank to send us a payment).