Interest rates on premium credit cards are getting higher despite the official interest rate falling to 4.5%.

Analysts discovered that the average interest rate charged on premium and gold credit cards was 18.7% back in 2008 when interest rates were at 7.25%.

Yet, astonishingly, despite two consecutive cuts in the official rate in late 2011, making the official rate 275 basis points lower than 2008, the average rate on premium cards had risen to 19%. These statistics were based on over 200 credit cards from 68 financial institutions.

The 19 gold and platinum credit cards currently listed on CreditCard4U across nine suppliers averages 18.86%. Hence, there are cheaper alternatives available, though several exceptional rates are single-handedly keeping this average lower.

The Citibank Clear Platinum credit card offers particularly strong value at 11.99%, while the St. George and BankSA premium credit cards are also strong value at 15.99%.

Another factor for consideration is the premium benefits that these cards offer. For those able to clear their balance without incurring large interest payments, the concierge services and extensive insurance policies offered on some expensive cards may prove more worthwhile.

In a credit card sector that, to most suppliers, no longer bears any relevance to lower official rates, there is still value to be found.

Ben Smith