Can I get a rewards card that comes with no annual fees?

Published on November 24th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Having a card that rewards you with points for every time you spend can be beneficial. Most cards on the market come with an annual fee that can make cardholders weigh whether getting a card is worth it. But what if you were able to get the best of both worlds by adding reward benefits without attracting an annual fee? Here is what you need to know.

Can you get a reward card that comes with no annual fee?

Finding a credit card that comes with a no annual fee and still lets you get rewards is possible in Australia. This can be beneficial for people who are looking to save and cut down costs. However, it is vital to check the fine print to see whether the card you wish to apply for has such features.

The cost of the average reward credit card

To understand the benefits of a 0% annual fee credit card that comes with rewards you can compare it to other reward cards. For example, cardholders that want to take out an average reward credit card can end up paying anything from $0-$450 for their card.

There are 0% annual fee credit cards that offer rewards for a promotional period of one year. For example, the Bank of Melbourne Amplify Platinum card comes with 50,000 bonus points with a 0% annual fee for a year but reverts back to $99 when the promotional period is over. However, other cards like the American Express Essential offer's rewards that do not come with a no annual fee.

Will I still get the same value for my points with a no annual fee card?

This will depend on your card provider and how they rate the value of each point earned. Most cards offer $1 for each point, but some providers could either increase or decrease the value of the cards points according to their policy. This is where comparing your options can help.

What are the benefits that I can get from a no annual fee reward card?

  • Maximising the bonus points offers. Signing up for a card can open benefits such as earning sign up bonuses, but you might have to spend a certain an amount to be eligible to unlock and access your points.
  • Interest-free days for purchases. This means that for every purchase you make during the promotional period, which typically ranges from 45 or 55 days, will not be charged with interest.
  • Complimentary extras. Depending on the card that you are interested in, you will be able to access benefits such as travel insurance, purchase protection, airport lounge access and extended warranty on purchases.

One thing you can keep in mind when looking for a no annual fee credit card is the point cap that may come with it. There are some reward cards that limit the amount you can earn for each statement cycle or year. This can help you refine your search for the right card that suits you and your spending habits.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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