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As COVID-19 continues to carry on, the banks are doing their part to help customers with financial relief.

Among other things, many banks are offering mortgage and credit card payment deferrals to help people cope with financial difficulties.

And more help just came with regards to credit card deferrals.

Big 6 Canadian banks cutting interest rates on credit cards

All the big 6 banks are cutting their interest rates IF you’re also getting deferred payments. So not everyone will qualify.

But if you have deferred your credit card bills, when you start to make your payments again, you’ll have accrued much less interest.

To qualify for deferred payments in the first place, this page has the details for all 6 of these banks.

So how much of an interest rate cut are we looking at?

The banks right now charge a standard interest rate between 19% to 22%, depending on the credit card and the type of balance (whether from purchases, cash advances, or balance transfers).

The banks are planning to cut the rates roughly in half, meaning you’re now looking at a rate between 10% and 11%.

A point to note: Even though your interest rates are being cut, it’s still an interest rate of around 10% for these banks. So while lower, you’re still looking at a sizable interest bill depending on your account balance. These deferrals should be used as a last resort.

Related: Credit Card Interest Calculator: How Much Are You Paying The Banks In Interest?

Where can I find more details?

The details aren’t live on most of the bank sites yet.

Here are the links to each bank’s COVID-19 resource page so you can easily check their exact offering when it’s posted.

Related: How Credit Card Interest Works in Canada

Your turn

The big banks are certainly stepping up and doing their part to help out their clients.

What are your thoughts on this news?

Let us know in the comments below.