An interest-free period is a feature of most of our credit cards. It provides you with the opportunity to avoid paying interest on purchases, if you pay the full closing balance by the specified payment due date each month.

Here are some tips to help you make the most of this feature.

Give me the main points

  • Interest-free periods are only available on everyday purchases and not balance transfers or cash advances.
  • Interest-free periods can be up to 44 or 55 days, depending on your credit card.
  • If you miss a payment, pay late or don't pay your full closing balance each month, you'll lose your interest-free period.

Use the maximum interest-free period available

The maximum interest-free period is the total number of days in a statement period. This is generally 30 days, plus the additional interest-free period until your payment due date which is either 14 or 25 days (depending on your card).

This means your credit card has an interest-free period on purchases of up to 44 or 55 days. The example below shows how the interest-free period works for a credit card with up to 44 days interest-free days on purchases.

Tips to enjoy interest-free days on your card

Provided you don’t have a balance transfer on your credit card, you can make the most of the interest-free period on purchases by:

  1. Paying your full closing balance by the payment due date on the monthly statement.
  2. Making sure you've also paid the full closing balance of the previous month’s statement by the due date as well.

Remember, payments like BPAY and transfers from non-NAB accounts take a few days to process.

If you have a balance transfer on your credit card

There’s no interest-free period on purchases if you have a balance transfer on your credit card. You’d need to pay your outstanding transferred balance in full by your statement’s payment due date to be eligible for an interest-free period on the purchases you make.

Here are some other transactions that don’t have an interest-free period:

  • Cash advances: these are cash withdrawals made from your credit card account.
  • Gambling transactions: these are considered cash advances.
  • Purchasing traveller’s cheques or gift cards.
  • Buying or loading value onto a pre-paid or store-value card.



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