Withdrawing cash from your credit card account is a very expensive way of getting ready cash – especially if using an ANZ credit card.
Since May, ANZ Bank no longer charges a flat fee on cash advances but a proportional one; 1.5 per cent of the amount advanced.
A cash advance of $1,000 will now incur a fee of $15. As yet none of the other major banks charge for cash advances in this way but there are other new fees creeping in.
On top of the upfront fees, remember that on any cash advance on a credit card interest is charged immediately, regardless of any interest-free period applying to purchases.
BankChoice recommends that consumers should always carefully consider payment options available, such as EFTPOS, which offer cheaper alternatives to cash advances.
Consumers need to be aware that some credit cards also now attract late payment fees and over-the-limit fees. The best way of avoiding these fees is to pay the balance off in full each month which will also reduce the amount of interest you will pay.
More information on ANZ’s new credit card fee structure.
Not happy with the deal you're getting on your credit card? Click here to compare credit card interest rates and fees or read more tips on credit cards.