How do ‘interest-free days’ work?

An interest-free period or cash flow period refers to a period of time in which no interest is charged on new purchases. Most American Express Credit Cards offer interest-free days of up to 44 or 55 days*, and this is the maximum amount of time between making a purchase and interest being charged, depending on when the purchase is made in your statement cycle. 

For example: If the statement period is 30 days and your Credit Card offers up to 55 interest-free days, you will have 25 days following your statement period end date to pay your closing balance and avoid being charged interest on the unpaid balance.

To be eligible for interest free days, the closing balance of the statement must be paid in full by the statement due date. The previous months’ statement must also be paid in full.

Hint: To maximise your Credit Card’s interest-free days, make your purchase on the day your new statement period begins and be sure to pay the closing balance by the due date shown.

*Depending on your method of payment, when you make a purchase, when your statement is issued and whether or not you are carrying forward a balance on your account from your previous statement period. If you pay by direct debit, your payment will be processed 10 days after your statement is issued.