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Canadian banks cut credit card interest in half

The CBC reports Canada’s Big Six banks all said they will reduce interest rates on credit cards to provide relief to customers affected by COVID-19 pandemic.

Bank of Montreal said on Saturday it will temporarily reduce credit card interest rates to 10.99 per cent for personal and small business customers receiving payment deferrals due to the outbreak. Bank of Nova Scotia announced the same change on Friday.

They joined Toronto-Dominion Bank, Royal Bank of Canada, National Bank of Canada and Canadian Imperial Bank of Commerce, who announced similar measures.

TD Bank said it will cut credit card interest rates by 50 per cent for customers experiencing hardship, and Royal Bank said it will reduce the charges by the same extent for clients receiving minimum payment deferrals.

National Bank will reduce annual interest rates to 10.9 per cent for clients receiving three-month payment deferrals, it said.

CIBC too will lower interest rates to 10.99 per cent on personal credit cards for users who request to skip a payment, the lender said.

Most of the banks’ credit cards charge interest between 19.99 per cent and 20.99 per cent on purchases.

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