ANZ Balance Transfer Offer 0% for 9 Months New and EXISTING Cards Then Reverts to Purchase Rate

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islandgirl123 on 03/08/2013 - 02:43 anz.com.au (871 clicks)
Last edited 03/08/2013 - 13:27 by 1 other user

For new and existing ANZ credit card customers. Transfer your existing credit card balance to an ANZ Credit card and get 0% p.a. for the first 9 months on non-ANZ credit or store card balance transfers then any unpaid balance reverts to the standard variable rate on purchases.

Multiple cards have the 0% offer for 9 months

ANZ platinum - annual fee $87 (waived for the first year), currently 19.39% pa on purchases
ANZ frequent flyer - annual fee $95, currently 19.39% pa on purchases
ANZ rewards - annual fee $89, currently 19.39% pa on purchases
ANZ first - annual fee $30, currently 19.39% pa on purchases
ANZ low rate MasterCard - annual fee $58, currently 12.99% on purchases

Hi all,

I usually wouldn't recommend ANZ as far as i could throw it, but i thought this was worth mention.

It's not unusual for banks to offer balance transfer rates to payout or make payments to non ANZ cards for new customers, but in this case if you already have an ANZ card (excluding balance visa by the look of it), you can also call up and they will process it at 0% for 9 months to any non-Anz credit or store cards (doesn't even have to be cards in your name). Do not request over the Internet if you have an existing card because you won't get this promo rate.

It doesn't matter if you already owe money on the ANZ card you have. You aren't obligated to close the other card/s you're paying out, but you can only owe a total of 95% of your credit limit after the balance transfer takes place. So if you owe heaps on another card at a higher interest rate it might be worth just maxing the ANZ to 95%, even if you can't completely pay out the other card just to save on interest.

Please read the fine print on the link, the balance will revert back to the purchase rate on the card after the expiry. If you still haven't paid it out in nine months and your card is at a high interest rate, you can fill in a form and they will change your card to one if their cheaper interest products (low rate MasterCard currently at 12.99% pa - comparable to an unsecured personal loan rate). Payments go to the higher interest rate first as per a government enforcement a year or so ago, so when you make payments in the 9 month period it won't go off the 0% amount until you've paid off everything that's at a higher rate than 0%.

In my case I had an ANZ card that I didn't use and wanted to buy a car. Although I had the money in my offset account for my home loan to pay for the car, it was smarter for me to pay for the car on my CBA rewards credit card (and get the points) and the same day - or when the 55 day interest free period is about to expire if you usually pay in full every month, call Anz to payout what was spent on my CBA.

This means for the next 9 months ill have to make minimum payments of 2% to Anz, and then just before the 9 months expires pay it out from my home loan. This will save me a reasonable amount of interest over the 9 months. If I didn't have the money after 9 months I could then balance transfer it somewhere else, or if that wasn't an option at the time let it revert to the purchase rate (but I'd call and make sure I had the card with the cheapest purchase rate first).

It's hard to explain but hope it makes sense and comes in useful for someone! If you wanted to get super tricky, if your Anz card is already maxed but you have another card with enough credit available, call the other bank to payout the ANZ, then call Anz to transfer it back to get the 0% for 9 months.

Thanks,

Bec

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ANZ

• 

  dbadcock on 03/08/2013 - 06:03

  +1

  Its a great bargain,

  I saved $712 from transferring my 5500 debt from CBA to ANZ. Just in interest and fees.

  The deal has been around for a few months now but in my opinion it is the best balance transfer deal currently on the market.

• 

  Geewhizz on 03/08/2013 - 06:15

  in this case if you already have an ANZ card (excluding balance visa by the look of it)

  I've looked briefly, but didn't find it, does it specifically exclude Balance visa?

  • 

    islandgirl123 on 03/08/2013 - 11:05

    +1

    Gheewiz balance visa was the only card I clicked on that didnt have 0% for 9 months in the card details. You can still ask! Or use this form to change products even before you process the transfer http://www.anz.com.au/resources/7/2/7219a9804e472b079690b666…

    Regarding annual fee it varies depending on the card you choose.

    It looks like the annual fee is waived for the first year on platinum cards, so that might be worth looking into. You'd just have to be sure you pay it off in that 9 months or you'll be slugged with platinum interest rates.

• 

  heal on 03/08/2013 - 07:33

  Is there an annual fee on the card?

  • 

    Ryk on 03/08/2013 - 09:21

    +1

    $30

    they describe as a "Low $30 annual fee"
    wonder why they cant just say "$30 annual fee", is anyone sucked in by the "Low"?

• 

  t_c on 03/08/2013 - 08:10

  Is it possible to balance transfer 95% to another credit card that is at 0, putting you into credit, and then withdrawing that money and putting it in a high interest savings account. ie, borrow at 0% , earn at 4.75 and on the golf course by 3. like the old 3-6-3

  • 

    islandgirl123 on 03/08/2013 - 11:12

    T_c - yes it is possible to do what you said. I've worked in the industry for years and I've done it myself also. You need to confirm with your other credit card provider that they won't charge you a cash advance fee to withdraw your own funds though before you do this as it might not be worth it if you're going to get slugged with a cash advance charge!

  • 

    snvl on 14/08/2013 - 11:05

    some balance transfer deals send you a cheque in your name. not sure about ANZ tho

• 

  shu on 03/08/2013 - 08:38

  When I saw this offer on tv.. I was thinking the same thing!

• 

  pgp82 on 03/08/2013 - 08:41

  +1

  What if you go with platinum? no annual fee for 1st year and you save another $30?

  http://www.anz.com.au/promo/credit-card/platinum/default.asp…

  • 

    GavSaverScene on 14/08/2013 - 06:46

    Was going to say exactly the same thing.

• 

  lukenoddy on 03/08/2013 - 08:57

  how does it affect your credit rating though??

  • 

    altomic on 03/08/2013 - 09:29

    +2

    well, compared to Australia's, it improves it.

    • 

      shmahoo on 03/08/2013 - 10:04

      well, compared to Kyle Sandilands, at least you're not, well, him.

  • 

    islandgirl123 on 03/08/2013 - 11:01

    Doesn't impact it at all unless you don't pay it.. At the most if you apply for a new anz card because you don't have one it will say on your credit application you applied for a credit card (but it won't even tell them if you we're approved or not - the government is changing this as of mid 2014 though). It's not good to have LOTS of applications for credit within a small time frame. One application or less every six months is normal.

    You can also get your credit file for free from Veda using this form http://www.mycreditfile.com.au/dotAsset/542215.pdf what you see on your file is all the banks can see.

• 

  chachi on 03/08/2013 - 10:03

  What if I already owe quite a bit on my Anz Mastercard? Are there any options to transfer funds elsewhere to ease the cost of interest?

  • 

    islandgirl123 on 03/08/2013 - 11:08

    You could apply for a new card with another bank that has a balance transfer offer and then transfer it back to the anz at 0% for 9 months if this offer is better, or if you have a friend or family member that will call their bank and payout your card with their card temporarily you can then transfer the balance back again at 0%. The most it would cost the friend is a day or two in interest (anz will pay them by bpay) which is easy to calculate :)

• 

  islandgirl123 on 03/08/2013 - 10:29

  …

• 

  islandgirl123 on 03/08/2013 - 10:30

  T_c - yes it is possible to do what you said. I've worked in the industry for years and I've done it myself also. You need to confirm with your other credit card provider that they won't charge you a cash advance fee to withdraw your own funds though before you do this.

  • 

    t_c on 03/08/2013 - 11:11

    Would it also work to transfer the funds onto a visa debit card.

    • 

      islandgirl123 on 03/08/2013 - 11:15

      Not that I'm aware. Anz will ask you for a biller code and reference number to pay out your other card and the visa debits I've always dealt with don't have a biller code.

• 

  islandgirl123 on 03/08/2013 - 10:37

  …

• 

  JuryWheel on 03/08/2013 - 10:51

  Is 95% usually the max balance transfer?

  • 

    islandgirl123 on 03/08/2013 - 10:54

    Finally on my iPad instead of phone so I can reply to actual posts directly. I've worked for 3 of the big 4 banks and its usually always 95% max

    • 

      bghunter on 03/08/2013 - 23:31

      islandgirl123, finally the mystery is solved. I was wondering what the above '…' comments were

      • 

        islandgirl123 on 05/08/2013 - 22:04

        Yep I sure made a mess of this place :S

• 

  ilostnemo on 03/08/2013 - 11:16

  Tread carefully with these offers.

  Thy are banking on you not paying your monthly balance off each month. (As you have shown in the past, by not having a balance)

  If you transfer $5,000 over, and during the month you make $500 in purchases, you get your statement for $5,500 and make a $500 payment, how is this $500 applied.

  The reason I ask is if you don't pay off your statement balance in full by the next due date, not only do you get charged interest, but you lose all the 55 days interest on items purchased as well, until you have brought your balance down to nil again.

  • 

    islandgirl123 on 03/08/2013 - 11:25

    I've copied the below from http://www.bankingreforms.gov.au/content/Content.aspx?doc=fu…
    Bear in mind if you applied for your card before July 2012 you might need to call your bank to specifically ask them to change the payment order so it pays off higher interest first.

    Credit card reform
    From 1 July 2012 changes to NEW credit card contracts mean:

    Credit card key fact sheets will provide a standardised layout of key information.
    You will have more control over the amount of credit you receive. When you apply for a credit card you will be asked to nominate a credit limit.
    Over-limit fees will be banned unless you specifically agree that your lender can charge you a fee for the service.
    You will be notified when you have exceeded your credit limit so you can decide whether to keep using your card or whether to make a payment to reduce your balance.
    Credit card providers will be required to direct repayments to the most expensive part of your credit card debt first - making it easier to reduce your debt faster.

    From 1 July 2012 changes to ALL credit card contracts mean:

    Offers by card providers to increase your credit limit will be banned unless you expressly agree to receive them.
    Your monthly statements will include personalised information such as how long it would take you to pay off your entire balance if you only make minimum repayments. This will help you make more informed decisions about how much to pay off each month.
    Credit card providers will need to clearly show how their interest free periods work. This will make it easier for you to take advantage of these offers and benefit from the reduced amount of interest you are charged.

  • 

    Geewhizz on 03/08/2013 - 11:27

    If you transfer $5,000 over, and during the month you make $500 in purchases, you get your statement for $5,500 and make a $500 payment, how is this $500 applied.

    The $500 is applied to the part of the debt that is attracting the highest interest rate, ie in this case, the purchases. My understanding is that there is no interest free period though, while there is still an amount outstanding on a balance transfer?

    • 

      Holysmoke on 03/08/2013 - 11:35

      Yes, thats right. As per T&C's:
      "9. Interest free days do not apply if you do not pay your Closing Balance (which includes any outstanding balance transfers, cash advances, purchases and Promotional Plans) in full by the due date each month. Payments to your account are applied in the order set out in the ANZ Credit Cards Conditions of Use."

• 

  ilostnemo on 03/08/2013 - 11:32

  Haahhaaaa

  Banking reforms, govt site, the same people who said it was now easy to swith HLs now, what a joke

  Payments
  (18) - Application of Payments
  Part A - How payments are applied to credit
  card accounts with no Instalment Plans or Buy
  Now Pay Later plan balances
  Payments that are made to your account will be
  applied first to transactions described in subclause
  (a) and then to transactions described in subclause
  (b). Within each subclause below, transactions at the
  highest interest rates are repaid before those at the
  lowest interest rates.
  (a) All standard and promotional balance transfers,
  cash advances, all standard and promotional
  purchases, government duties, taxes, fees and
  other charges that have appeared on a statement
  of account;
  (b) All standard and promotional balance transfers,
  cash advances, all standard and promotional
  purchases, government duties, taxes, fees and other
  charges that have not yet appeared on a statement
  of account.

  From that,

  using my example above, the $500 payment would come off, your $5000 balance, so you'd be charged interest on the $500 purchases.

  This to me, is smoke and mirrors.

  I have never switched, and always thought it was to good to be true, but it doesn't look that great, when you work out, how they treat payments.

  • 

    Holysmoke on 03/08/2013 - 11:43

    +2

    Thats incorrect. The $500 payment would come of the $500 purchases as the purchases attract a higher interest rate than the balance transfer. It clearly says in the paragraph:
    "Within each subclause below, transactions at the highest interest rates are repaid before those at the lowest interest rates."
    And both the $500 purchase together with the balance transfer would fall into subclause (a).

    • 

      islandgirl123 on 03/08/2013 - 11:57

      I think what he means is you'd get charged interest on that transaction straight away because there is no interest free period, so lets say you spend $500 and you get your statement for $5500, you'd expect Interest on that transaction from the date of the transaction up until you pay it back. But any payments you make after the statement cycles with the $500 purchase on it, will go straight off that $500 that's attracting interest.

      • 

        Holysmoke on 03/08/2013 - 12:03

        Agreed.

    • 

      ilostnemo on 03/08/2013 - 12:00

      Thanks holysmoke,

  • 

    islandgirl123 on 03/08/2013 - 11:44

    +1

    I wasn't disagreeing with you, I was giving you info from a government site regarding payment order. I tend to assume that everyone would do what I do and not use the card after the transfer has been processed. But yes, for transactions made after the balance transfer has been processed you will get charged interest on that transaction from when it occurs, up until when the transaction is paid in full. People that use balance transfers usually do it because they can't afford to pay their credit card balance in full every month, you can't have the best of both worlds.

  • 

    islandgirl123 on 03/08/2013 - 11:47

    Ilostnemo - if you can show me a bank that will give you a balance transfer AND let you pay off the transactions you've made AFTER with an interest free period I'd be very surprised! They're all the same regarding payment order now because the government regulated it.

• 

  ilostnemo on 03/08/2013 - 12:18

  Cheers islandgirl and holysmoke.

  I doubt there would be a bank that would give you both, (It'd be noice though)

  • 

    islandgirl123 on 03/08/2013 - 12:20

    No worries! :)

  • 

    Holysmoke on 03/08/2013 - 13:12

    Actually just found two offers with interest free balance transfers AND purchases:

    Citibank Clear Platinum
    * A low introductory rate of 0% for six months on balance transfers, and up to six months on purchases and cash advances. After the introductory period standard variable interest rates will apply and any unpaid balance transfer amount will revert to the cash advance rate1.
    * Half price annual fee of $49 in your first year2 (usually $99).

    BOQ Low Rate Visa Card
    * 0% p.a. on purchases and balances transferred for a period of 4 months. Balances transferred up to 80% of your credit limit and will revert to the cash advance rate thereafter.
    * $55 Annual Fee

    • 

      islandgirl123 on 03/08/2013 - 13:31

      There are a few of those going around these days. Bankwest does this a lot too. The thing I liked about this offer is that you don't need to apply for a new credit card if you already have an ANZ card. This offer also reverts to purchase interest rate, most revert to cash advance rate like the ones above which is usually higher interest again.

      This is an amazing tool to find the best deals http://compare.theage.com.au/credit-cards

• 

  dealman on 03/08/2013 - 14:40

  Can someone explain to me how this works,

  If I do a cash withdrawal from another bank's credit card and transfer over to ANZ , do I get the 9 months free ?

  • 

    islandgirl123 on 03/08/2013 - 15:16

    If you're going to do that I would suggest calling ANZ first and getting them to process the payment to your other card to put it in credit first (you can put credit cards into credit as well as debit). If you have a bank account with the bank you're cash advancing from just call them and ask them to transfer the credit balance into your savings account as a mistaken payment. If you don't have an account with them you can withdraw the credit balance from the credit card either online or at an ATM/branch, but the bank may charge you a cash advance fee even if you're withdrawing a credit balance. This is normally easy to get refunded on the grounds that it was your own money. The bank ANZ is paying on your behalf don't know you've done a balance transfer to put it in credit, for all they know you could have accidentally paid into the wrong account (as ANZ make the payment to them through Bpay).

    • 

      dealman on 04/08/2013 - 19:44

      Thanks for the detailed explanation,
      appreciate the effort .
      Thx

      • 

        islandgirl123 on 05/08/2013 - 22:04

        My pleasure :) Good luck

      • 

        cs2011 on 10/09/2013 - 01:22

        would it be ok to apply online or is it better to do it over phone/branch?

      • 

        islandgirl123 on 10/09/2013 - 15:12

        If its for a new card then online is fine! Good luck :)