CPS Silver Low Rate MasterCard

01 Jul 2009

Tags: cps|silver|low rate mastercard|balance transfer

Interest Rate (purchases):	11.85 %
Interest Rate (cash):	11.85 %
Annual Fee:	$45.00
Interest Free Days:	55
Travel Insurance:
Rewards Program:

The CPS Silver Low Rate MasterCard reminds me of Catholicism - it's all love and joy until you do something wrong, then it becomes old-testament hell-fire wrath.

The annual fee is $45, which is quite cheap, particularly as the card includes purchase security which will protect your purchases against loss, theft or damage for up to three months.

Both the purchase and cash rate are a low 11.85%. Identical rates for purchases and cash seem to be a characteristic exclusive to small banks and credit unions - the Bendigo Basic Black also offers identical purchase and cash rates.

The interest free period is 55 days, which is very generous for a card with such a low rate. Very few sub-12% cards have an interest free period greater than 44 days and although eleven days doesn't seem like much, it can make a significant impact on the total amount of interest paid. A $2,000 purchase on a card with a rate of 11.85% and 44 days interest free will accrue $7 more interest than on a 55 day card.

CPS is also currently offering a balance transfer deal of 2.9% for six months. While it's not brilliant, at least it doesn't revert to a high rate after the expiration of the offer.

All of this sounds good, until you look at the exception fees. This is where the aforementioned biblical wrath is unleashed upon unsuspecting cardholders. If you're late with a payment, CPS will charge you $15 every seven days until the amount is paid. That's a total of $60 a month, which is absurdly high (even the major banks only charge around $25).

Using your card overseas will cost you 3.4% in foreign transaction fees, which is the highest we've seen. A £500 purchase in the U.K. (around $974 at the time of writing) will incur over $33 in fees.

The cash advance fees are a bit more reasonable. Domestic cash withdrawals will cost 2.7% or $2.70, whichever is greater. International cash advances are a flat rate of $5, but they're still subject to the 3.4% foreign transaction fee.

Also, if you're not a resident of SA, WA or NT, then you won't have access to any branches (with the exception of a few banking centres in regional New South Wales).

The verdict: a cheap, no frills card offering a low annual fee and generous interest free period. There are lower rates available, but they usually offer a shorter interest free period. If you're planning an overseas trip, or you're occasionally late with your payments, this is not the card for you.

What next?

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