Big four bank NAB has responded to the growing popularity of buy-now-pay-later services among millennials eschewing credit cards, by introducing a “no interest” credit card that instead charges a monthly fee.
The NAB StraightUp Card offers credit of up to $3000, and has a “no use, no pay” feature, meaning that if there’s a $0 balance during the statement period, you don’t have to pay the monthly fee.
There are no annual or late payment fees, and the cost ranges between $10 a month for a $1000 credit limit to $15 for $2000 and $20 for $3000.
That charge means the effective interest rate on using the card is between 11% and 13.5%, assuming the full credit limit is used. That cost is well below the swingeing 20% interest rates charged on many cards, despite record low interest rates, which have driven millennials away from bank credit cards.
