Canadians are getting a break on their credit cards.
Several of Canada's largest banks are offering reduced interest rates on personal credit cards for Canadians in financial hardship due to the coronavirus outbreak.
CIBC credit card clients who request to skip a payment and are experiencing financial difficulties will receive a temporary lower annual interest rate of 10.99%, the bank announced in a written statement. The temporary lower rate will be retroactively applied to March 15, the bank said.
Royal Bank (TSX:RY) said it was cutting credit card interest charges by 50% for personal and small business clients receiving minimum payment deferrals for up to two months. Clients already receiving minimum payment deferrals will also have interest charges cut in half with the difference in interest credited to their account, said RBC.
National Bank (TSX:NA) said it is reducing the impact of interest charges on credit cards for clients who request a deferral and who are most affected by this crisis. The bank will defer minimum monthly payments on National Bank Mastercards by up to 90 days and temporarily reduce the annual interest rate on credit cards to 10.90% for all credit card holders granted a payment deferral.
Scotiabank (TSX:BNS) said it is offering a range of relief measures, including minimum credit card payment deferral for up to three months. However, interest will continue to accrue on outstanding balances and will be payable once the deferral period is over, says a notice on that banks website.
TD (TSX:TD) announced it would reduce credit card interest rates by 50% for customers facing financial hardship. TD said customers directly affected by COVID-19 who need payment deferrals can apply for relief online.
The help extended to consumers comes as the big banks faced calls to lower interest rates on things like credit cards, which carry high interest rates compared with other types of borrowing.
