Bank of Queensland has rejected the honeymoon rate credit cards in favour of genuine low-rate cards with its latest product release.
The Banks Low-Rate Visa Card boasts one of the best interest rates available in the market at 9.99% p.a. which, unlike some other cards, will not jump after an introductory period.
It also offers 44 interest-free days and provides the benefits of the Visa Preferred Services program, making it a formidable threat to other no-frills products.
Managing Director David Liddy said the card, which would be advertised as ridiculously low, was both responsible and market-leading.
Low-rate cards have been on the market for a few years now, but until now, the consumer has had limited choice in cards that remained below 10% p.a. Mr Liddy said.
By using so-called honeymoon rates, banks are able to offer unsustainably low rates for a few months, before upping their rates to much higher levels once customers are locked in.
We believe this technique does not actually provide customers with a long-term benefit, and the low interest rate is merely used to attract rather than assist them.
Bank of Queenslands low-rate card is all about customer service, and providing a genuine product where our customers know that there will be no ballooning of their credit card interest rate down the line.
The release of Bank of Queenslands Low Rate Visa Card follows the introduction a few weeks ago of the Banks full-access Cash Management Account and revamped Bank of Queensland Bond rates, featuring market-leading interest rates in their classes.
These products are part of an overall campaign to grow BOQs national footprint by offering not just better service, but also a top range of products, Mr Liddy said.
Bank of Queenslands Low Rate Visa Cards interest rate may adjust with market rates.