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Rewards programs

With the increased competition and a limit on how low the interest rates can go, many providers are now seeking other ways to sweeten consumers, with many looking to rewards programs to promote consumer loyalty.
 
Virgin offers discounts to its customers through its Mate's Rates program, including travel, accommodation, sports equipment and more. Citibank have recently formed a relationship with BP and released the BP Citibank MasterCard, with discounts, bonuses and cash-back offers.
 
Credit cards offering a cash-back bonus are growing in popularity. The NAB has released a credit card with a capped cash-back rate of $10 a month. However, conditions do apply.
 
The old favourite frequent flyer program is still popular as well, where frequent flyer points are accrued each time a purchase is made. These points can then be redeemed for air travel with the partner airline.
 
By marrying together a low interest rate and useful rewards program, providers have found a way to increase the attractiveness of their cards and stay ahead of the competition.

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