Fact or fiction: Can credit cards pay you interest?

Having a credit card issuer pay you interest sounds like a deal too good to be true? After all, we have 0% interest on purchases for a limited period and 0% balance transfer for life and many other types of introductory offers. But there is a hitch, you actually have to have a surplus balance.

This feature is not available in many Australian credit cards and for many people not worth considering. However, credit cards that pay interest are almost like a debit card with an overdraft facility. In other words you could do away with a transaction account or a savings account and just consolidate with one product. This is likely to reduce transaction fees, possibly earn some rewards points and receive one statement of all your activity, knowing that if you have a surplus it will pay your interest and when you are short there is a cost.

Doing more research never hurts. To see a wide range of credit card offers visit RateCity's credit card comparison tool.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.