The Monthly Scoop: November's No Annual Fee Update
The Reserve Bank lifted the cash rate to 4.60% in September, its highest level in 15 years, and the board meets again on Tuesday 3 November. With prices rising 1.0% in the September quarter alone, most economists are tipping another 0.25% rise, which would take the cash rate to 4.85%.
When the cost of living keeps climbing, trimming fixed costs is one of the easiest wins. Last November, Aussies put a record $29.9 billion on their credit cards as Christmas shopping kicked off, according to RBA data. If you're using a card for that spending, there's no reason to also pay a hefty annual fee for the privilege.
A card with no annual fee, even just for the first year, keeps more money in your pocket while you work out whether the card suits you. Just check what happens after the intro period ends and make sure you can pay the balance in full each month, as interest charges cost far more than most annual fees.
Editor's Pick-of-the-Bunch: Best No Annual Fee Credit Card for November
The ANZ Platinum Credit Card comes with a $0 annual fee in the first year ($87 p.a. after) plus $350 back when you spend $3,500 on eligible purchases in the first 4 months from approval. The 22.49% p.a. purchase rate is on the higher side, so it works best if you pay your balance in full each month.
⭐ Look beyond the $0 fee: Check whether the no-fee deal is ongoing or only for the first year, and set a reminder before it ends so you can decide whether the card is still worth keeping. Also read the fine print for other costs like cash advance rates, late payment fees and overseas transaction fees, which can add up faster than an annual fee.
T&Cs apply for all card offers so check our review, the PDS and TMD for details.
How do credit cards with no annual fee work?
A no annual fee card doesn’t charge ongoing yearly fees, which will save you anywhere from $60 or so per year up to $1,450 depending on the card.
If you're thinking, "wow, that's too good to be true!", it's a good idea to pause and weigh up the pros and cons.
Pros
- ✔ Saves money on annual fees
- ✔ Handy to have as an emergency card
- ✔ Can come with bonus points, 0% balance transfers and other offers
Cons
- ✖ Often have fewer features
- ✖ Reduced annual fee may only be promotional for the first year
- ✖ May have a very high interest rate
As you can see, no annual fee cards have some great perks but won't suit everyone. Let's look at who suits these cards.
Who would choose a card with no annual fee?
Annual fees help cover costs, which is why a card with no annual fee may not include all the same bells and whistles.
That's ok though, because no annual fee cards can be useful if you want to:
👍 Have an emergency card that doesn't cost anything to keep in your pocket
👍 Use a special feature like a balance transfer to help pay off credit card debt
👍 Earn points without paying a big annual fee
👍 Build a credit score while keeping costs down
👍 Offset your mortgage with a low-cost credit cardWhile you won't get the same features as a high-end platinum card, no annual fee cards are incredibly helpful for keeping costs down while getting the benefits of a credit card.
| 💡 Try to pay off your card each month to avoid interest charges. If you think you'll need to pay interest, you could look at low interest rate cards as well. |
When another card might be a better option:
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- If you’re a frequent traveller looking for points, consider a credit card with a great rewards program that may work out better for your pocket. in the long run in terms of perks, particularly if you’re after frequent flyer points.
- If you regularly pay interest on your balance, a low interest rate credit card might be a better fit, since no annual fee cards often have a higher purchase rate.
Comparing cards for the best no annual fee deal
When you’re using our comparison guide, you’ll find some cards waive the annual fee for life, while others have conditions applied. You’ll see the details alongside each credit card to make it easy for you to compare.
When comparing, look for factors like:
Annual fee: Is it $0 forever, or just for the first year? A limited-time annual fee waiver can still be worth it. Just make sure you know when the fee kicks in, especially if you're not planning to stick around.
Balance transfer: Transferring debt? Check the purchase rate and whether the card offers interest-free days. Some no annual fee cards skip those perks while you’ve got a balance transfer going, so please, read the fine print before making the switch.
Interest free days: Not all no annual fee cards play nice. Some skip interest-free periods altogether. So unless you plan to pay off everything immediately, double-check what’s included.
Purchase rate: Some no annual fee cards make up for the savings with higher interest rates. This is especially true if you carry a balance. But, if you’re paying off your card in full each month, it’s less of a worry.
Rewards earn: Some no annual fee cards let you earn points on eligible purchases. Check whether the $0 annual fee is ongoing or introductory, and compare earn rates, caps and exclusions. The Qantas American Express Discovery Card, for example, has an ongoing $0 annual card fee and earns Qantas Points on eligible purchases. Any separate bonus offer has its own conditions.
Other benefits: Perks aren’t just for premium cards. Some no annual fee options throw in extra discounts, offers or even travel perks! It’s worth checking what sweeteners come with the deal.
Previous cardholder: Some offers are for fresh faces only. Read that boring fine print before you apply again or you might not qualify
Now that you know what to watch out for, you might still have a few questions. Let’s help clear some things up with some quick FAQs
How do I apply for a no annual fee credit card?
Found a card you like? You can click through to the provider’s online application form and apply directly.
You’ll need to provide some details like identification, bank statements, and payslips, and meet certain eligibility criteria such as age and proof of residency. It's pretty straightforward at the end of the day.
Why choose a no annual fee credit card?
A no annual fee card can reduce your ongoing costs, particularly if you pay your purchases balance in full by the due date and meet the card's interest-free conditions. Other charges, including monthly account fees on some products, foreign transaction fees, cash-advance fees and merchant surcharges, may still apply. Compare the total cost and benefits with a rewards card using the break-even discussion below.
Second, if you carry a balance occasionally. Annual fees on rewards cards ($100–$300/year) are fixed costs that compound the damage of interest charges. A no-fee card with a lower purchase rate (some sit at 12–14% p.a.) reduces the total cost of an outstanding balance compared to a rewards card charging 20% p.a. plus $199 p.a. in fees.
Third, a no annual fee card can be useful as a backup or travel card. Check whether it also waives foreign transaction fees and whether any monthly account fee or conditions apply. A $0 annual fee alone does not establish that holding or using the card will cost nothing.
How does an introductory no annual fee offer work?
While some cards charge no annual fee for the life of the card, but others only waive the fee for a limited time or if you meet certain conditions.
Here are the two main types to keep an eye out for:
- No Annual Fee Introductory Offer: You won’t pay an annual fee for the first year (or however long the promo runs). After that, the standard fee kicks in. That is, unless you cancel beforehand.
- No Annual Fee After Meeting A Minimum Spend: Spend a set amount each year and the annual fee stays at $0. Fall short, and you’ll likely be charged the regular fee.
Do no annual fee cards have bonus offers?
Yes! Just because there’s no annual fee doesn’t mean there’s no fun. Plenty of no annual fee cards still come with juicy bonuses. Think rewards points, cashback and gift cards. For example, you might snag 30,000 bonus points if you are approved and spend $2,000 on your card in the first 3 months.
You’ll also find balance transfers deals, low rates and free additional cardholders. You can see the key offers in our comparison guide, right next to each card.
What's better: a no annual fee card, or a rewards card?
This is the most common comparison question on this page — and it has a clear answer once you do the maths. The question isn't which is "better" in the abstract; it's whether a rewards card's annual fee is justified by the extra value it returns to you specifically.
The break-even formula: annual fee (dollars) ÷ [earn rate (points per dollar spent) × redemption value (dollars per point)] = annual eligible spend needed for rewards to cover that fee. Convert cents per point to dollars per point before calculating: 0.8 cents = $0.008. This simplified calculation assumes a constant earn rate and excludes interest, other fees, bonus offers, other benefits and rewards available on a no annual fee alternative.
Example using illustrative assumptions: a rewards card has a $195 annual fee and earns 1.5 points per dollar of eligible purchases. At a redemption value of 0.8 cents per point, the fee-covering spend is $195 ÷ (1.5 × 0.008) = $16,250/year, or about $1,354/month. If the redemption value falls to 0.5 cents, the spend rises to $26,000/year; at 0.4 cents, it rises to $32,500/year. Lower point value increases the spending needed to cover the same fee. These are hypothetical redemption values, not guaranteed Qantas values or CCAU's published flight-redemption valuation.
Compare your actual alternatives: There is no single spending cut-off that makes a rewards card better for everyone. Compare the additional rewards and benefits you expect to use with the additional annual fee, interest and other charges. If the no annual fee alternative also earns rewards, count only the extra rewards from the fee-charging card. Earn caps, excluded purchases, introductory offers and the value you actually obtain when redeeming points can change the result.
What if you want to do a balance transfer to a no annual fee card?
Plenty of no annual fee cards offer zero fees for a balance transfer, and an introductory 0% rate. Be aware that it’s common for balance transfers to have a high purchase rate or the cash advance rate applied after the waived period. If you can set up a plan to pay off your debt within the 0% timeframe, you’ll have paid no interest and no fees for the privilege of being debt-free.
What’s the best no annual fee frequent flyer credit card?
Compare the options on the best Qantas and Frequent Flyer comparison guide and select the arrow to sort by annual fees. You’ll find most cards with great frequent flyer incentives also charge higher annual fees, but providers regularly offer bonuses or 12-month no annual fee offers.
Also look for:
Bonus points offers: some cards offer big sign-up bonus points, although the annual fee waiver is most likely to be for the first 12 months, and can be quite high thereafter.
Points per dollar: a no or low annual fee card with frequent flyer points may have a lower earn rate, such as 0.75 points per dollar rather than 1 or 2.
Other benefits: many credit cards offer other bonuses like discounts on merchandise and entertainment, free travel insurance and perks on holidays and car hire. Sometimes the perks can outweigh the annual fee, so make sure you’re choosing a card that benefits your lifestyle.
What other fees might you get on a no annual fee credit card?
No annual fee cards still attract the same penalties and fees as other credit cards, including:
Cash advance fees: you should always avoid withdrawing cash from your credit card because it attracts interest immediately, which will hurt your wallet more with the higher purchase rates attached to most no annual fee cards. Some cards charge up to 30% interest on cash advances, so it’s best to avoid the practice altogether.
Late payment penalties: if you’re late on your minimum payments, you’ll be charged a late fee as per standard credit card custom. You can avoid this by setting up automatic payments from your bank account. Many providers give you the option to autopay the full amount each month so you never have to pay interest.
Currency conversion fees: when you buy from an overseas merchant or you’re travelling internationally, your spending may include a foreign exchange fee, usually a percentage of the purchase amount. Some providers waive this fee, so check the card’s terms and conditions if you’re a frequent global spender.
Permanently free vs first-year-free: the distinction that matters most
In comparison tables, a permanently free card and a "first year free" card look identical — both show $0 annual fee. But their long-term cost is completely different, and confusing the two is the most common mistake on this page.
| Type | Year 1 | Year 2+ | 3-year total cost | Best for |
|---|---|---|---|---|
| Permanently free card | $0 | $0 | $0 | Long-term holders, set-and-forget users |
| First year free ($87/yr after) | $0 | $87/yr | $174 | Short-term use or if you plan to switch annually |
| First year free ($149/yr after) | $0 | $149/yr | $298 | Only worth it if the card has a strong ongoing rewards program |
The introductory offer can still be the right choice — especially if a card offers a substantial sign-up bonus (e.g. $400–$600 cashback or 100,000+ bonus points) that you can earn before the fee kicks in. The key discipline: set a calendar reminder for 11 months after approval to reassess whether the card still earns its fee. Most banks will send a renewal notice, but by then you've already been charged.
Questions readers ask before switching to a no annual fee card
Common questions we see from people comparing no-fee options — the specific scenarios comparison tables rarely address.
"I have about 80,000 Qantas Points on my current rewards card. If I switch to a no annual fee card, do I lose them?"— Reader question, recurring
Closing a credit card does not itself cancel Qantas Points already transferred to your Qantas Frequent Flyer account. Confirm that recent card-earned points have been transferred before closing the card. Qantas Points remain subject to the program's rules, including expiry if you do not earn or use points through eligible activity at least once every 18 months. For Velocity or bank rewards, check the relevant program's expiry and account-closure rules separately.
"Should I cancel my existing card before applying for a no annual fee card, or apply first then cancel?"— Reader question, recurring
It's generally worth applying for the new card first, then cancelling — in that order. Cancelling your existing card reduces your available credit and can slightly affect your credit utilisation ratio. More importantly, some lenders look at your total existing credit limits when assessing a new application — having an active card in good standing can support approval. Once your new card is approved and activated, cancel the old one by calling the bank directly (not just cutting up the card — the account needs to be formally closed to stop any annual fees being charged).
"Are no annual fee cards actually free? What fees should I watch out for?"— Reader question, recurring
A $0 annual fee does not mean every charge is waived. Depending on the card, monthly account fees, foreign transaction fees, cash-advance fees, late payment fees, paper statement fees or merchant surcharges may apply. CommBank Neo, for example, charges $15, $20 or $25 per month depending on the credit limit, with a waiver only when its no-processed-transactions and repayment conditions are met. Check the current fee schedule and waiver conditions before treating a card as cost-free.
What 145 reader questions reveal about no annual fee credit cards
Our editors coded every approved reader question on this page — approximately 145 questions submitted from November 2013 to December 2025. This is not a survey; it is a structured review of a decade of genuine reader intent. The striking finding: the same questions appear in 2013, 2018, and 2024. The products have changed. The consumer confusion has not.
35%
22%
18%
10%
8%
7%
The calculation most comparison pages don't do: when a no annual fee card costs you more
No annual fee cards are marketed as the low-cost option. For cardholders who pay in full every month, they usually are. For cardholders who carry a balance — even occasionally — the maths works differently. Here are two calculations we ran using RBA interest rate data and ASIC's published average Australian credit card balance figure ($2,500, from ASIC's Credit Card Lending in Australia data).
Calculation 1: The balance-carrier break-even
Calculation 2: The overseas-spend break-even
These calculations use publicly available rate data. Individual cards vary. The point is not that no annual fee cards are poor value — for low-balance, low-overseas-travel cardholders they genuinely are the cheapest option. The point is that the headline benefit disappears faster than most people expect once balance-carrying or overseas travel enters the picture. Our reader Q&A thread below has seen this question asked by Tim Kelly (May 2023), Marion (May 2023), and multiple others over the past decade — and the honest answer is always: it depends on how you actually use the card.
When our editors told readers a no annual fee card wasn't the right choice
These are real exchanges from the Q&A thread below, reproduced in full. They illustrate the cases where the instinct to avoid an annual fee leads readers toward a worse outcome.
What "no annual fee" doesn't cover: the real cost breakdown
No annual fee refers to the yearly card fee. It does not necessarily mean there is no monthly account-keeping fee: check both charges and any waiver conditions. Other transaction fees and interest can also apply, depending on the card and how you use it.
| Fee type | Typical range | When it applies |
|---|---|---|
| Overseas transaction fee | 2.5–3.5% per transaction | Any purchase in foreign currency, including online purchases billed in USD, EUR, GBP. Applies even when the merchant is in Australia if they process in foreign currency. |
| Cash advance fee | 2–3% (min $3–5) | ATM withdrawals, cash-equivalent transactions (e.g. gambling, some bill payments). Interest accrues from the transaction date — no interest-free days apply. |
| Late payment fee | $15–$35 | Minimum payment not received by statement due date. Repeated late payments may trigger default interest rates or account review. |
| Additional cardholder fee | $0–$20/year per cardholder | Adding a partner or family member as a supplementary cardholder. Some no annual fee cards waive this; others do not. |
| Paper statement fee | $2–$5/month | Choosing physical statements over e-statements. Minor, but an easy cost to avoid by opting into email delivery. |
| Over-credit-limit fee | $0–$30 | Largely eliminated under NCCP Act reforms, but some older card products still carry this. Confirm with issuer before applying. |
The overseas transaction fee is the most consequential for most readers. At 3%, a $3,000 holiday spending amount generates $90 in fees — equivalent to many mid-tier cards' annual fee. This is why our editors consistently redirect readers who primarily travel overseas toward cards that address FX fees directly, rather than optimising for no annual fee.
Sources used in this article
- CCAU reader Q&A archive, approximately 145 questions, November 2013 – December 2025 (visible in thread below)
- RBA Statistics Table C1: Credit and Charge Card Statistics (purchase rates sourced from current issuer product disclosure statements)
- ASIC Credit Card Lending in Australia data: average cardholder balance figure ($2,500)
- NCCP Act 2009 (National Consumer Credit Protection): over-limit fee regulatory context
- Individual product disclosure statements: Bankwest Zero Mastercard, ANZ First, Westpac Low Rate, CommBank Low Rate (rate and fee verification)
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