Westpac introduces credit card interest payment holidays

author-avatar By
on April 24, 2020
Westpac introduces credit card interest payment holidays

By Scott Lewis on Flickr

Westpac customers in financial stress due to COVID-19 will be able to have their credit card interest payments paused for three months.

Westpac is rolling out a three-month support package that enables credit card users paying interest on their outstanding debt waived.

Under the same package, there will be no accruable interest on new purchases or cash advances, no interest charges to existing debts, and there will also be no requirements to make repayments over the period.

After the three months, minimum payments and interest incurred will resume - customers will still be able to use their credit cards during the holiday as long as they haven't reached their credit limit.

Eligible customers include those that have lost their income or job, or have faced reduced hours as a result of COVID-19.

It's important to note the support measures won't be available to people who have already applied for financial hardship assistance on the same account.

Westpac is the first major bank to introduce a pause on interest payments, while other banks have reduced minimum payments, which still incur interest charges on outstanding balances.

It's not yet known if interest will be capitalised, something many customers taking mortgage holidays are facing.

Westpac currently has a plethora of credit card products on offer, with the lowest interest rate available belonging to the Westpac Lite product at a 9.90% p.a. purchase rate, with a 45-day interest-free period.

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Latest Articles

Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.


Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree to the Savings Privacy Policy