Banks keeping credit card rates high

Banks are refusing to pass on interest rate cuts to credit card customers, reaping $1.4 billion a year.

About 2.2 million Australians who don't repay their card in full each month are coughing up more than $600 in extra interest every year, which is propping up the banks’ record profits.

The average credit card rate is 16.67 per cent, but would be 12.68 per cent if institutions had passed on rate reductions over the past five years.

None of the big four banks has passed on the December rate reduction.

Source: Herald Sun