Credit Card
Interest Rates

Find out how it works, how Credit Card interest is calculated,
and learn more about interest-free days.

What is Credit Card interest?

When you use a Credit Card, you’re borrowing money. You’ll need to pay the full closing balance within the specified period, or your Credit Card’s interest-free days. Otherwise, you’ll pay a percentage of the remaining balance in interest according to your Card’s rate.

How does Credit Card interest work?

The amount of interest you’re charged depends on things such as:

Your Credit Card interest rate (which you can see in your online Account).
The amount you spend.
When you pay your Credit Card bill.

If you pay off your full balance by the statement due date each month, you can avoid Credit Card interest payments. But if you pay anything less, such as the minimum payment, you’ll incur interest on the outstanding amount, as well as any previously charged interest.

Your purchase details and the amount of interest you’ve been charged can be found in your Credit Card statements.

How is Credit Card interest calculated¹?

Interest is calculated daily and applied to your closing balance at the end of each day. The daily interest is added up and will appear on your Account at the end of each statement period.

Example calculation

Let’s say the current balance on your bill is $1,500, and your interest rate is 19.95%p.a.*. What is the daily interest charge that will appear as one total sum on your next monthly statement?

What is a Credit Card interest-free period?

An interest-free period (also known as Credit Card interest-free days) simply refers to the time between buying something with your Credit Card and interest being applied to that purchase. This can be up to 55 days, depending on the Credit Card you have, when you paid for the item, and when your payment’s due. Please note, if a direct debit is set up on the account, this may impact the number of interest free days.

Please note, if you have a direct debit set up to pay your Card Account, this may impact the number of interest free days.

How it works

On some American Express Cards^®, like the Gold Rewards Credit Card, you can enjoy up to 55 days interest free on purchases. This is based on:

When you made the purchase.
When your statement was issued.
Whether you are carrying forward a balance on your Account from the previous statement period.

There are no interest-free days for cash advances or any purchases where you’re carrying forward a balance on your Account from the previous statement period.

Do Credit Card interest rates fluctuate?

We may, from time to time, review the interest rate on any of our products. We will make sure that you are notified well in advance if the interest rate on your Credit Card is changing.

Does the interest differ between Credit and Charge Cards?

The key difference between Credit and Charge Cards is that you are required to pay off the entire closing balance if you have a Charge Card and therefore interest will not be charged on your purchases. However, if the amount is not paid off in full a fee will be charged. A Credit Card allows you to carry the payment of the balance over time, with interest applied to the remaining balance.

Understanding Card types

What are the benefits of having a low interest rate Card?

With a low interest rate Card, you could:

Reduce your cost of borrowing if you choose to carry a balance from month to month.
Pay off your balance sooner, with less Credit Card interest charged.

Understanding Card types