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Can you transfer money from your credit card to a savings account?

Jodie Humphries avatar
Jodie Humphries
- 4 min read
Can you transfer money from your credit card to a savings account?

If you find yourself in a situation where you need cash in hand, did you know that you can transfer money from your credit card to your savings account? However, this convenience comes with a caveat. 

Since credit cards aren’t meant for cash transfers, you might be required to pay a fee and could be charged high interest rates for such a transaction. It’s worth considering other options first, and only when all else fails, thinking about making a transfer from your credit card to your savings account. 

Read on to know how to transfer money from your credit card to your savings account.

Here’s how you can transfer money from a credit card to a savings account

Before you get ready to make the transfer, check with your credit card provider and bank if such a transfer is permitted. You can either call them or log into your account and look for an option there. 

Once you confirm that your card and selected account allow this, you can make the transfer online through the bank’s mobile app, or over the phone. The basic steps for each of the options are covered below, but there could be slight variations from one provider to another.

  • Steps to make the transfer over the phone
  • Call your credit card provider and verify your account.
  • Request to transfer to a bank account.
  • Confirm the amount that you wish to transfer to the bank account.
  • Provide your bank account number, BSB and any other required details.
  • Follow the prompts to complete the transaction.

Steps to make the transfer online and with mobile banking:

  1. Log in to your credit card account.
  2. Choose the ‘Transfer’ option.
  3. Key in the amount that you wish to transfer.
  4. Enter your bank account number, BSB and any other details mentioned on the form.
  5. Follow the steps to complete the transaction.

If your credit card and savings account are with the same bank, the funds might be available to you within a day. If the transfer is to an account with a different banking institution, you might be required to wait for 2-3 business days for the transaction to be completed.

Things to consider before you transfer from your credit card to a savings account

Since a credit card isn’t meant to support cash transfers, you might have to pay fees and incur higher interest rates. Make sure you factor these in along with other potential costs before you go ahead with this transaction.

  • Transaction fees: Even if the transfer is not considered as a cash advance transaction, a transaction fee may apply. Moreover, there could be additional fees if your transaction is declined.
  • Cash advance fee: A transfer from the credit card to a savings account is usually considered a cash advance transaction, and you'll typically pay a fee worth around 3% of the transfer amount.
  • Cash advance interest rate: Additionally, your transfer might also be charged interest at the cash advance rate, which is usually higher than the typical credit card purchase rate.
  • International transfers: If you’re transferring funds from your credit card to an overseas account, and if the transfer is allowed, you might need to pay an international transaction fee as well.
  • No interest-free days: Your transfer will not be eligible for interest-free days, and that means you'll be charged interest straight away.

What if your bank or credit card refuses the transfer?

There is a possibility that your bank or credit card could decline the transaction. In this case, you can consider the following alternatives to transferring from your credit card to a savings account:

  • Use an ATM cash advance: You could withdraw cash from an ATM using your credit card and then deposit the money directly into the bank account. Remember, cash advance rates and fees will apply.
  • Apply for a personal loan: If you're in a pinch and need money in an emergency, you might want to take a personal loan instead of a credit card cash advance. In the medium to long term, these loans are often less expensive than a credit card cash advance.
  • Make an international transfer: If you wish to send funds to an overseas account, you might be better off using an international transfer service. Please note that these services accept payment only through an Electronic Funds Transfer, so paying with your credit card might not be an option.

Disclaimer

This article is over two years old, last updated on January 25, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.

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Product database updated 23 Jul, 2024

This article was reviewed by Kate Cowling before it was published as part of RateCity's Fact Check process.