Discovery Card advertise a 55 day interest-free period, but what are the details? Hard to find. I’ve been provided with some information which is shared below:
The up to 55 day interest free period
When you pay the full outstanding amount on your DiscoveryCard by the due date, you enter an interest free period, referred to as a 55 day interest free period, since there are a maximum of 55 days that any given transaction can be interest free.
If you make a purchase on the first day of your billing cycle, the statement will close 30 days later following which you have 25 days to your due date. If you pay the full outstanding balance on the due date, then you have enjoyed interest free credit for 55 days for that purchase.
If you make a purchase on the day your statement closes, then you have 25 days to your due date. If you pay the full outstanding balance on the due date, then you have enjoyed interest free credit for 25 days for that purchase.
To be in a 55 day interest free period, and therefore for interest not to be charged to your account, payment must be received for the full closing balance of the statement, before the due date.
We confirm that you need to settle the full outstanding amount on your account in order to enjoy the up to 55 days interest free period. This will prevent interest being charged on your account unless where applicable such as cash ttransactions.
So as examples:
If I buy something on 20 of January, I have just under a month until the next statement, then I have about 25 days to pay the money back without incurring interest.
However, if I buy something on 15 January, I the statement close in the next couple of days and I have about 25 days to pay the money back without incurring interest.
Certain transactions attract interest immediately
Interest will be charged immediately from the transaction date for the following transactions, unless there is a sufficient credit balance in your account to settle the transaction amount:
• Cash withdrawals with the credit card
• Travelers’ cheque purchases with the credit card and certain FOREX transaction
• Electronic funds transfers which result in a debit balance on your account
• All budget facility transactions and balance transfers
• Fuel or fuel-related transactions on the DiscoveryMotor card
• Transfers from the straight facility to the Medical Saving Booster.
Your account was opened in 2005 under the Usury Act. The interest rates applicable to your account [were] effective 26 November 2010. This is as a result of the National Credit Act.