Bankwest Credit Cards … worth a close look

Established in Western Australia last century, Bankwest progressively expanded into other Australian States and has won numerous awards for its innovative products. Bankwest was acquired by Commonwealth Bank in December 2008 and now operates as a stand-alone, wholly owned subsidiary of CBA.
Bankwest has a number of credit card products.  Two of them – Bankwest MasterCard Lite and Bankwest Zero MasterCard are reviewed here.   Both are MasterCard products and are recognized by more than 20 million outlets, world-wide.

Bankwest MasterCard Lite

This card has an annual fee of $55 and allows up to 55 days interest-free on purchases.

The interest rate on this card is its main attraction – currently just 10.75% per annum on purchases.  Their interest rate on cash advances (20.49% per annum) is not as competitive as other financial institutions.

Don’t let the cash advance pricing cloud your judgment about this card.  You could save up to $80 per annum per $1,000 of account balances compared with other market rates.  That saving is enough to cover the annual fee and still give you further savings.

Bankwest Zero MasterCard.

This product is a fairly standard credit card product.  The interest-free term on new purchases can be up to 55 days, but this card has no annual fees.  The catch is that the interest rate is higher than the MasterCard Lite (15.99% versus $10.75 per annum).

So the question becomes “what average balance must I have before the saving with Bankwest MasterCard Lite’s lower interest rate covers its annual fee?”  The answer:  about $1,000.

So, if your average credit card balance is likely to be maintained at less than $1,000, then consider going the ‘zero annual fee’ route; above that, go Bankwest MasterCard Lite.

Still not convinced? If more research is required before deciding on your application for a credit card, browse further through our reading material.