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Starting 1 July 2008, there is a change to Malaysia's credit card interest rate structure. The new Tiered Interest Rate Structure is introduced by Bank Negara Malaysia to reward those who pay their credit card bills promptly.
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Reduce your standard 18% p.a. interest to 15% p.a. by paying* your credit card bills promptly for 12 consecutive months. If you have no payment delays for 12 months in a row, you start to enjoy a lower interest on the 13th month. We understand that sometimes you are late for reasons beyond your control, so for those who pay promptly for at least 10 out of 12 months, you will enjoy a lower interest of 17% p.a.
| Applicable interest rate on the 13th month |
15%
p.a. |
17%
p.a. |
17%
p.a. |
18%
p.a. |
18%
p.a. |
Month |
Examples of payment history |
All of the past 12 months |
11 out of past 12 months |
10 out of past 12 months |
9 out of past 12 months |
Less than 9 out of past 12 months |
| 1 |
JUL 2008 |
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| 2 |
AUG 2008 |
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| 3 |
SEP 2008 |
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| 4 |
OCT 2008 |
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| 5 |
NOV 2008 |
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| 6 |
DEC 2008 |
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| 7 |
JAN 2009 |
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| 8 |
FEB 2009 |
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| 9 |
MAR 2009 |
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| 10 |
APR 2009 |
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| 11 |
MAY 2009 |
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| 12 |
JUN 2009 |
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Minimum payment of 5% made ON/BEFORE the payment due date |
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Minimum payment of 5% made AFTER the payment due date |
NOTE: To continue enjoying the reduced interest, you must continue to pay promptly from the 13th month onwards.
* Minimum Amount Due must be paid within the due date.
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Point to note:
The standard interest rate remains at 18% p.a. However, if you are consistently a good paymaster, you will be able to enjoy a lower interest of 15% p.a.
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Late payment on the other hand will lead to increased penalty charges. Late payment charges have been revised to a minimum of RM10 OR 1% of total outstanding balance, whichever is higher, up to RM100.
| Examples of total outstanding balance |
Minimum Payment Due
(5% or RM50, whichever is higher) |
Late Payment Charge |
Before 1 July 2008
(1% of min payment or RM5, whichever is higher) |
After 1 July 2008
(1% of total outstanding balance or RM10, whichever is higher) |
| RM100 |
RM50 |
RM5 |
RM10 |
| RM1000 |
RM50 |
RM5 |
RM10 |
| RM2000 |
RM100 |
RM5 |
RM20 |
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Interest-free period for retail transactions will now be 20 days from statement date ONLY IF all retail transactions (excluding cash advance, balance transfer and instalment payment plan programmes) of the previous month are fully paid by the payment due date.
This means, if you make partial payment, minimum payment or do not make payment on or before the payment due date, finance charges will be imposed from the day the transaction is posted to the card account.
So start managing your credit card bills efficiently and begin to enjoy lower interest rates!
Useful Tips:
Did you know there are other ways that can help you save interest?
- The new Alliance Bank Cash Back Credit Card gives you up to 1.5%* cash back on your retail purchases, including petrol, groceries and utilities. No carry forward balance is required and you will also receive Timeless Bonus Points on your purchases. Click here for 1.5% Cash Back Programme >.
*Terms and conditions apply.
- By transferring your outstanding balances from other credit cards into your Alliance Bank Credit Card, you can reduce your interest charges by up to 72%. You also have the flexibility to decide your repayment period from 6, 12, 18 or 24 months. Click here for Balance Transfer Plans >.
- If you have several outstanding credit card accounts, you can consider Alliance CashVantage Personal Financing-i to consolidate your debts into a single loan with repayment as low as RM90 per month. Click here for Alliance CashVantage Personal Financing-i >.
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