The Commonwealth Bank will introduce a new low interest credit card next year charging a 9.90% interest on purchases.
The announcement comes as the major banks prepare to face parliament again, with Westpac and ANZ the first to face the House of Representatives economics committee today, with CBA boss Ian Narev appearing next week.
The CommBank credit card being launched in 2018 will have a $5 monthly account fee, a maximum limit of $5000, and no cash advances.
And while banks are already sending alerts via SMS, especially when accounts are overdrawn, CBA is planning to introduce new smartphone alerts from next month for its app users offering warnings on credit card repayments, overdrawn accounts and high cost transactions.
CBA will also give customers a 24-hour grace period if they’re late making credit card repayments or their account is overdrawn.
CommBank App users will be reminded when a card payment is due and if it’s overdue, they’ll get an additional alert saying if they make the payment by midnight the following day they’ll avoid a late payment fee. A similar arrangement applies on overdrawn accounts, with a real-time alert and the change to bring the account back into balance by midnight that day without overdrawn fees.
Australia’s biggest bank appears to be embarking on a series of consumer-friendly changes and to win back public trust following a series of scandals that have damaged the bank’s reputation, including allegations that the bank ignored money laundering through its ATMs, which has resulted in legal action by the regulators as well as a shareholder class action.
CBA Executive General Manager Clive van Horen said the bank wanted to give customers more control over their finances.
“We know there’s strong demand for a simple credit card option and we also recognise we need to help our customers avoid credit card late payment and overdrawn account fees,” he said.
“The real-time alerts in our CommBank App give customers even more tools to help manage their spending and avoid fees and charges.”
The CBA’s new card matches Westpac’s “Lite” card, released earlier this year, which has the same interest rate and limits.
Business Insider Emails & Alerts
Site highlights each day to your inbox.