On 30 March 2020, we updated the NAB personal credit card terms and conditions. The changes relate to interest-free days on purchases and only affect you when you have a balance transfer on a personal NAB credit card.

What's changing?

New terms and conditions

From the 30th of March 2020, you’ll be able to receive interest-free days on purchases even if you have an outstanding balance transfer amount.

You’ll need to pay your ‘interest-free days payment’ in full by the due date each month to be eligible.

To pay off your outstanding balance transfer amount during the promotional period, you’ll need to make additional payments over and above the ‘interest free days payment’.

This change affects new and existing balance transfers.

Please read the addendum to the Terms and Conditions which applies to all balance transfers.

Terms and Conditions addendum effective 30 March 2020 (PDF, 227KB)

What you need to do

This new payment option will appear on your first statement on or after 30 March 2020.

Changes to your statement

An image showing what the new payment option will look like on a statement.

While you have a balance transfer, there will be changes to the statement layout.

You will see a new ‘Interest-free days payment’ option in the 'Payment Details' box. This is the amount that you need to pay in full by the due date each month, to receive interest-free days on purchases.

Also, under 'Account Summary', you’ll find the 'Closing balance' includes the outstanding balance of your Balance Transfer.

Paying off your balance transfer

Remember, in order to pay down your balance transfer amount during your promotional period, you’ll need to make additional payments.

Examples of how the changes work

Here are two examples if you have an outstanding balance transfer after 30 March 2020.

Paying your statement in full

Simone has a current balance transfer amount of $1000 owing on her NAB credit card. She makes a purchase of $200.

Simone receives a statement with a closing balance of $1200 ($1000 balance transfer amount plus $200 purchase).

The new ‘interest-free days payment’ amount on her statement is $200 and is due in 15 days.

Simone pays the $200 on or before the due date so she doesn’t pay any interest on that purchase.

Paying the minimum monthly payment

Ross has a current balance transfer amount of $1000 owing on his NAB credit card. He makes a purchase of $200.

Ross receives a statement with a closing balance of $1200 ($1000 balance transfer amount plus $200 purchase).

The new ‘interest-free days payment’ amount on his statement is $200 and is due in 15 days.

Ross only pays his minimum monthly payment of $25 on or by the due date. This is less than the full ‘interest-free payment’ amount of $200.

He starts to accrue interest (at the purchase interest rate) on the unpaid balance of $175 from the previous month, as well as any future purchases he makes. This is because he hasn’t paid his ‘interest-free days payment’ in full.

If Ross pays the ‘interest-free days payment’ in full on his next statement by the due date, he’ll be eligible to receive interest-free days on purchases again.

When does interest stop accruing?

Interest on purchases stops accruing from the day you made your first ‘interest-free days payment’.

If the first time you pay the ‘interest-free days payment’ is for the first statement you receive after March 30th, you may see some residual interest on your second statement after 30 March 2020.

This residual interest is for the period from the date of issue of the first statement up to but not including the day you made your first interest free days payment.

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