ANZ replaces cashback with 0% balance transfer offer
ANZ may have removed its cashback offers and 0% purchase promotion but cardholders can still enjoy savings with a 0% balance transfer for 16 months.
ANZ has made some changes to its Low Rate and Low Rate Platinum cards this week. In bad news for new applicants, the bank removed its cashback offers from both cards. Previously, new Low Rate and Low Rate Platinum cardholders could enjoy $100 or $250 back in their account respectively within the first two months of approval. But since Tuesday this week, both offers have been scrapped.
The 0% purchase rate for 6 months offer has also been removed from both cards - the purchase rate has reverted to the standard rate of 12.49% p.a. While this is still a competitive purchase rate, it doesn't offer the same interest savings as a 0% offer does.
However, new cardholders can cut down their credit card costs with a new 0% offer. If you want to get your credit card debts in control, you can take advantage of a 0% for 16 months balance transfer promotion. This means that ANZ now boasts three cards that offer 0% on balance transfers for 16 months, with the Low Rate and Low Rate Platinum now joining the ANZ First Visa.
Be aware, consolidating your debts with ANZ doesn’t come entirely cost-free. When you move your debt across, you’ll collect a balance transfer fee of 2% of the total debt. Once the 16 month balance transfer offer finishes, any remaining debts will collect the cash advance rate of 21.74% p.a.
This is an interesting move for ANZ as many other banks have cut back their balance transfer offers in the recent months. St.George reduced its 0% for 18 months offer to interest-free for 12 months and Westpac also dropped its 0% balance transfer offer from 16 to 12 months. ANZ itself also contributed to this trend after lowering the length of its balance transfer offer from 18 to 16 months.
While the addition of the 0% balance transfer offer to the ANZ Low Rate and Low Rate Platinum cards is a bonus for some cardholders, it alters the appeal of the card. The cards still offer the ongoing low purchase rate of 12.49% p.a. but cardholders can no longer take advantage of the interest-free offer or cashback. This could be a drawback for cardholders who were looking to avoid interest on their spending.
Instead, now the card is geared towards applicants who want to consolidate their debts rather than save on interest. If you have big-ticket purchases in mind and want to take advantage of 0% interest for a promotional period, you can compare interest-free credit cards here.