CommBank's announcement comes just a day after NAB announced the first ever Australian no-interest credit card, however, the NAB StraightUp Card.has slightly lower fees than the CommBank Neo card.

CommBank Neo will provide customers with up to $3,000 credit, with a monthly fee dependent on your credit limit, and has no interest payments, no late payments, and no foreign currency fees.

Customers will be refunded their monthly fee if they have no purchases in a month and the card balance is zero.

The credit limits and their monthly fees are: 

  • $1,000 credit limit: $12 monthly fee
  • $2,000 credit limit: $18 monthly fee
  • $3,000 credit limit: $22 monthly fee

In contrast, the NAB StraightUp Card has a $10, $15, and $20 monthly fee for the same credit limits respectively. 

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

Provider

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  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Maximiser (<$100k)

    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money

    Saver Account (<$250k)

    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money
    05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Maximum Age - 24

    Goal Saver

    • Maximum Age - 24
    02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    No monthly fees
    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    No monthly fees

    Save Account

    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings

    Bonus Saver Account (Amounts < $250k)

    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings
    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    For customers aged 14-35 years
    For customers aged 14-35 years

    Future Saver Account ( < $50k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Boost Saver

        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 24, 2024. View disclaimer.

        Unlike the NAB card however, CommBank Neo will offer eligible customers a range of benefits through cashback offerings from a range of more than 80 retailers. 

        Angus Sullivan, Commonwealth Bank's Group Executive of Retail Banking Services, said the cashback offering made the monthly fee even greater value for customers. 

        “Using the full power of our innovation means CommBank Neo will also offer access to discounts and cash back offers with a range of retailers through CommBank Rewards,” Mr Sullivan said.

        “We are really excited to launch our simple, easy to understand product which we believe offers great value to our customers.”

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        Source: CBA

        CommBank Neo will be available in late 2020 and will be able to be used anywhere Mastercard is accepted. 

        There will be a minimum repayment of $25 or 2% of your closing balance, whichever is greater. 

        The card doesn't provide access to cash advances or gambling. 

        CBA also plans to launch a similar product for small business customers in early 2021, named CommBank Neo Business. 

        Is it cheaper than a regular credit card? 

        Credit cards are often maligned for their high fees, so an interest free credit card may sound great in theory, but is it all it's cracked up to be? 

        If you were to spend $1,000 with a $3,000 limit and took 12 months to repay this, you'd be charged $264 in fees on the CommBank Neo card.

        In comparison, if you were to take 12 months to pay $1,000 off a credit card with no annual fee and an interest rate of 8.40% p.a, you'd be charged around $84 in interest.

        So the CommBank Neo card would actually cost $180 more than a regular credit card in this specific example. 

        Using the same example, the NAB StraightUp Card would charge $240 in fees, $24 less than the CBA card and $156 more than a regular credit card.