What you need to know about CommBank Neo, the 0% interest credit card
The Commonwealth Bank has a 0% interest credit card. Be aware of the catch though – even an interest free product can still end up costing you.

The Commonwealth Bank has a 0% interest credit card. Be aware of the catch though – even an interest free product can still end up costing you.
Key points:
- The CommBank Neo card has an ongoing 0% interest rate, meaning you won’t be charged interest on purchases.
- Even though there’s no interest charges, monthly fees of up to $25 apply when you use the card.
- The monthly fee could add up over time and cancel out the benefit of the 0% interest rate, so it is important to weigh up your options.
What is the CommBank Neo card?
According to Commonwealth Bank (CBA), the key features of the CommBank Neo card include:
- Three credit limits of $1,000, $2,000 and $3,000.
- A monthly fee of:
- $15 for customers with the $1,000 limit
- $20 for the $2,000 limit
- $25 for the $3,000 limit
- No monthly fee if the card is not used and the card balance is zero.
- No late, foreign exchange or additional cardholder fees.
- Access to rewards via CBA’s loyalty program, CommBank Yello, which offers cash back from retailers like Ampol, Coles and JB Hi Fi to eligible customers.
CBA advises that the minimum monthly repayments on the card is at least $25, any amount by which the closing balance exceeds the credit limit, or 2% of the closing balance (rounded down to the nearest dollar) – whichever is the greater amount.
Customers can set their own credit limits on the Neo card, but will be charged a $15 fee if they change the limit within a given statement period and use the card. There is also an option to set a limit per transaction, which would decline any purchases made above that limit.
The bank also lists the Neo’s ‘trade-offs’:
- You won’t earn Awards points.
- International travel insurance isn’t included.
- Not eligible for SurePay plans or Wealth Package benefits.
- Low credit limits.
- Cash advances are blocked, though ‘exceptions may apply’
What are the pros and cons of the CommBank Neo card?
According to CBA, the benefits of the Neo card are to give customers “certainty and control over their spending through a simple, easy to understand product”, and that it can be used anywhere that Mastercard is accepted.
Canstar money expert Effie Zahos said consumers needed to take care when viewing any new credit offering, and while this type of ‘0% interest but monthly fee’ product could be suitable for some Australians, it also added yet another layer of complexity to the wide range of products already available.
“You really need to do your homework and work out what the best card is for you,” she said. “And it is really important for customers to take care when considering an ‘interest-free’ product which has a monthly fee.”
“While ‘no interest for the life of the card’ sounds great, the reality is that a fee can have a big impact on how much purchases on the card end up costing you.”
She said that in many ways, a monthly fee was much like interest being charged on overdue balances on credit cards, and that it was handy to find out the ‘effective interest rate’ applied to purchases on a card. An effective interest rate is the cost of repayments – including fees – on a credit card over time, expressed as a percentage, which can be compared to interest rates on other types of products.
What about credit limits?
As well as thinking about product features and the effective interest rate, Ms Zahos said it was also important for anyone considering taking out this type of product to choose the correct credit limit for their needs.
“It’s human nature that if someone does find that they are eligible for the highest limit, they will want to take that out,” she said.
“The trouble with this is that if they don’t actually need the higher limit, then the higher fee would have a bigger impact on small purchases. Then, of course, there’s the temptation to spend up to your allowable limit.
“Doing so could undo all the good of this type of (0% interest) card.”
She said it was important to remember, too, that any ‘cashback’ incentives on purchases were only paid out once, while the monthly fee was charged every month that the balance was higher than $0.
For example, if someone were to take out a CommBank Neo card with a $3,000 limit and purchase $3,000 worth of goods at once, they may qualify to receive a one-off $15 cashback after the purchase, which would cover part of their $25 monthly fee for the first month. However, if it took that customer four months to pay off the balance, at $750 a month, the card fees would have added $85 to the purchase price.
How does the CommBank Neo card compare to Afterpay and other similar products?
Ms Zahos said it appeared the CommBank Neo card was designed to try and attract customers who might otherwise use buy now, pay later (BNPL) services, such as Afterpay or Zip.
BNPL services typically do not apply an interest rate, but can charge a late fee, payment processing fee or apply a default interest rate to outstanding balances. They also have a smaller credit limit than CommBank’s card allows (with some exceptions).
“It will be an interesting competition to watch, as while the market leader in this area does not charge an interest rate, late and payment processing fees do apply,” she said.
“On the positive side for the CommBank Neo card, at least there is no retailers’ fee. Many BNPL companies can take a cut of a sale.”
How does the CommBank Neo card stack up against other major bank 0% cards?
Two other major banks, NAB and Westpac, have lifetime 0% interest cards of which monthly fees apply.
NAB StraightUp 0% interest card
NAB’s StraightUp product has no interest, no annual fees and no late payment fees. Customers have three credit limit options ($1,000, $2,000 and $3,000) and would be charged a monthly fee ($10, $15 or $20 based on your credit limit). This fee only applies when they have a balance owing or use the card during the month. If the card remains unused, the monthly fee would automatically be reversed. There is also a fixed minimum monthly payment ($35, $75 or $110 based on your credit limit).
Westpac’s Flex 0% interest card
Westpac’s Flex card charges no interest or late fees. It has a single credit limit option of $1,000 and a $10 monthly fee, which will not be charged if the outstanding balance on the previous statement is paid in full by the due date. A minimum monthly repayment of $40 also applies.
Cover image source: Mike Hewlett/Shutterstock.com
This article was reviewed by our Content Editor Alasdair Duncan before it was updated, as part of our fact-checking process.

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