Your guide to understanding interest on your Citibank Credit Card

Your guide to understanding interest on your Citibank Credit Card

Calculating interest on your Citibank Credit Card account Now let’s show you how interest is calculated on your Citibank Credit Card account using the...

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Calculating interest on your Citibank Credit Card account Now let’s show you how interest is calculated on your Citibank Credit Card account using the example below.

If you have more questions or require general information about your Citibank Credit Card after reading this guide, please refer to your Terms and Conditions booklet or your Citibank Credit Card statements. Alternatively, you can contact us on 13 24 84 for enquiries 24 hours a day, seven days a week.

Example 3*: You paid the Minimum Payment Due in January and therefore had unpaid balances carried forward into February.

Details Date Grocery Dec 10

February Statement Amount $100.00

March Statement Date

Amount Date Details $200.00 Furniture Jan 15 Jan 25 BPAY Payment -$30.00 Feb 01 Interest Charged Prior Month – Retail $0.94 1 Feb 01 Interest Charged – Retail $2.65 2

Details Feb 25 BPAY Payment Feb 28 Mobile Bill

Amount -$273.59 $33.25

Here are some tips to help you manage fees and interest charges on your credit card account:

Opening Balance

Closing Balance

Opening Balance

Closing Balance

Opening Balance

Closing Balance

$0.00

$100.00

$100.00

$273.59

$273.59

$33.25

Minimum Payment Due

Payment Made on Due Date $30.00

Minimum Payment Due

Payment Made on Due Date

Minimum Payment Due

Payment Made on Due Date

$30.00

$273.59

$30.00

$33.25

$30.00

• Understand the basics of interest and how interest is applied to your credit card account • Always make at least the Minimum Payment Due or full payment before the Payment Due Date • Monitor the transactions and balances on your account and ensure your available credit is sufficient to cover your new transactions

Since you only paid the Minimum Payment Due in January, you will be charged interest from the day the grocery purchase was made until the outstanding balances are fully paid off. The details of the interest charges are as follows:

Interest Type

11

2

Interest on

Applicable Period

Amount Outstanding x

Daily Percentage Rate x

Number of Days =

Grocery purchase from Transaction Date to January Statement Date

December 10 to January 1

$100.00

15% / 365

23

$0.94

Interest on Retail Purchase

Grocery purchase after January Statement Date and before your minimum payment

January 2 to January 24

$100.00

15% / 365

23

$0.94

Unpaid balance on the grocery purchase after your minimum payment

January 25 to February 1

($100.00 $30.00)

15% / 365

8

$0.23

Furniture purchase

January 15 to February 1

$200.00

15% / 365

18

$1.48

• Take advantage of low-rate promotional and introductory offers • Always read and understand the Terms and Conditions of your credit card account

O 9 DH 12/ AR C Exp NK IBA CIT

$2.65 ® Registered to BPAY Pty Ltd ABN 69 079 137 518 © 2008 Citigroup Pty Limited ABN 88 004 325 080, AFSL 238098. Citibank, CitiGold, Citi, Let’s get it done and Arc Design are registered service marks of Citigroup Inc.

*Please see page 2 for assumptions of the examples

0 00 9 678 5 4 123 6 4 45 ER LD 9

• Look for products that offer interest-free periods

Interest Charges

Interest on Prior Month

Total

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Your guide to understanding interest on your Citibank Credit Card

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MCG7420 (02/08)

January Statement

Manage interest on your Citibank Credit Card account To help you understand more about interest on your Citibank Credit Card, we created this easy-to-read guide which explains: • What interest is • How interest is calculated • Different types of interest • Some tips to manage your credit card account

What is interest? When you use your credit card you are borrowing a sum of money that has to be re-paid at a date in the future. The cost for this service may be made up of fees and/or interest. Interest is the cost of borrowing the money and we charge you interest based on the Annual Percentage Rate (APR) as a percentage per annum. Interest rates on Citibank Credit Cards change from time to time. For example, your interest rates may increase when the Cash Rate set by the Reserve Bank of Australia increases. Also your interest rates may decrease if you are offered a special promotion. We know it is important to keep our customers upto-date, so you will be notified of any change to your interest rates either by mail or by an advertisement in a national newspaper. You will also see a message on your next statement confirming the new rates.

Types of interest

Interest-free days on your Citibank Credit Card account

Below are the four types of interest applicable to your Citibank Credit Card:

If your Citibank Credit Card account has interest-free days available, you will not incur interest charges on retail purchases if you pay the Closing Balance in full, on or before the Payment Due Date of every statement. However, cash advances and special promotions (including balance transfers) are not eligible for interest-free days. The number of interest-free days available on a transaction is the number of days from the Transaction Date to the Payment Due Date.

Interest on Retail Purchases You make a retail purchase when you purchase goods or services using your Citibank Credit Card. Bill payments, fees, charges, and expenses are retail purchases for the purpose of calculating interest. The APR applicable to retail purchase is shown as “Annual Percentage Rate: Retail Purchases” on the first page of your statement.

If you have unpaid balances from previous statement periods, you will not be eligible for interest-free days until you have paid your Closing Balance in full for two consecutive statement periods. Example 1*: You always pay the full Closing Balance by the Payment Due Date of every statement.

January Statement

Interest on Cash Advances

Date

A cash advance transaction is any transaction where cash or its equivalent is obtained, for example, telegraphic transfer or purchase of travellers cheques. The APR applicable to cash advances is shown as “Annual Percentage Rate: Cash Advances” on the first page of your statement.

Dec 10

Interest on Special Promotions

Jan 15 Jan 25

Details Furniture BPAY Payment

Amount $200.00 -$100.00

Date Feb 25 Feb 28

Details BPAY Payment Show Tickets

Amount -$200.00 $300.00

Closing Balance

Opening Balance

Closing Balance

Opening Balance

Closing Balance

$0.00

$100.00

$100.00

$200.00

$200.00

$300.00

Minimum Payment Due $30.00

Payment Made on Due Date $100.00

Minimum Payment Due $30.00

Payment Made on Due Date $200.00

Minimum Payment Due $30.00

Payment Made on Due Date $300.00

There will be no interest charges for the transactions that are eligible for interest-free days. For example, you have 16 days interest-free for grocery purchase from the Transaction Date (December 10) to the Payment Due Date (December 25).

Interest on Prior Month

Example 2*: You had unpaid balances carried forward into your January statement.

Interest on Prior Month is charged if you were not charged interest during your previous statement period and you did not pay the Closing Balance of that statement in full by the Payment Due Date. The APR applicable to Interest on Prior Month is the same as the APR applicable to Interest on Retail Purchases.

January Statement Details Amount $100.00 Grocery -$30.00 BPAY Payment Interest Charged Prior Month - Retail $3.49 Interest Charged - Retail $7.21

Interest charges on your Citibank Credit Card are calculated based on the APR applicable to each transaction and applied to your account monthly.

For all examples in this guide, we assume: • Retail Purchase APR is at 15% per annum

Opening Balance

• Interest free period of 55 days on retail purchases

The basic interest calculation is:

• Statement Date is the 1st of every month and Payment Due Date is the 25th of every month



• Payments are always made on the Payment Due Date by BPAY® and there are no overdue payments

where Daily Percentage Rate is APR divided by 365.

Date

Opening Balance

Date Dec 10 Dec 25 Jan 01 Jan 01

Transaction Amount x Daily Percentage Rate x Number of Days

Amount $100.00

March Statement

If you are offered a special promotion, you may receive a fixed or reduced APR for a specific period. The APR applicable to special promotions can be found in the transaction details of your monthly statement.

How is interest calculated?

1

Details Grocery

February Statement

February Statement Date Details Jan 15 Furniture Jan 25 BPAY Payment

March Statement Amount $200.00 -$580.70

Date Feb 25 Feb 28

Details BPAY Payment Show Tickets

Amount -$200.00 $300.00

Closing Balance

Opening Balance

Closing Balance

Opening Balance

Closing Balance

$500.00

$580.70

$580.70

$200.00

$200.00

$300.00

Minimum Payment Due $30.00

Payment Made on Due Date $580.70

Minimum Payment Due $30.00

Payment Made on Due Date $200.00

Minimum Payment Due $30.00

Payment Made on Due Date $300.00

You will be eligible for interest-free days again after paying the full Closing Balances in January and February.

• Minimum Payment is 2% of the outstanding balance or $30, whichever is higher • 365 days in a year 2

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*Please see page 2 for assumptions of the examples

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