This review marks a milestone for this website: it's the last Westpac card. Westpac offer sixteen credit cards (most banks have between four and six), so reviewing them all has been a marathon.
We've had some laughs (remember the
No Annual Fee?). There have been good times (the
Altitude Gold) and bad (the
Altitude Platinum). We've been pleasantly surprised (the
55 Day Gold) and angered (the
Earth). But the time has (finally!) come to close the book on Westpac credit cards, at least until such time as they decide to release another which, knowing Westpac, is likely to be next week sometime.
So are we able to end the Westpac chapter on a high note with the Westpac Low Rate?
Not really.
The Westpac Low Rate is a lot like every other no-frills offering from a major bank. It has a $45 annual and 55 days interest free. There is also a balance transfer offer of 3.99% for 6 months, although any balances remaining after the expiration of this period revert to the cash rate (currently 19.98%).
The interest rate is 11.74%, which puts the Westpac Low Rate about tenth on our table of over eighty cards. Of those ten, three have an equivalent or lower annual fee, but none of those three offer 55 days interest free (two offer 44 days, one offers none).
Of the top ten, three others are from major banks (the
ANZ Low Rate MasterCard, the
NAB Low Rate Visa and the
Commonwealth Low Rate). So how does the Westpac Low Rate stack up against it's Big Four competition?
The cheapest (lowest rate) card from a major bank on our table is the NAB Low Rate Visa at 10.99%. It too offers 55 days interest free, but for a slightly higher annual fee ($49). On an average $3,000 balance over twelve months you'd pay $22.50 less on the NAB, so the additional $4 is reasonable.
Commonwealth and ANZ both have similar low rate cards (the ANZ Low Rate MasterCard and the Commonwealth Low Rate). Like the Westpac, the interest rate on both is 11.74% and the interest free period is 55 days, however the annual fees are higher. On the ANZ you'll pay $58 and on the Commonwealth you'll pay $48.
So, of the low rate offerings from the Big Four banks, the Westpac is probably the second cheapest behind the NAB Low Rate Visa. However both cards pale in comparison to the cards offered by smaller banks and credit unions.
Take the
Bankwest Lite MasterCard for example. It has an interest rate of 9.99%, offers 55 days interest free and has an annual fee of $59. Again, using a $3,000 balance as an example, the lower rate on the Bankwest Lite means you'll pay $52.50 less each year in interest.
You may also consider the
Bendigo Basic Black (10.75%) or the
St George Vertigo MasterCard (10.99%).
The verdict: if you're specifically looking for a low rate card from one of the big four banks and you don't like the NAB Low Rate Visa, or you conduct all your existing banking with Westpac, the Westpac Low Rate is not a bad card.
If you're not constrained by a choice of lender, there are much cheaper cards available.
