Arkansas has gained notoriety as President Clinton's home state, but those in the credit card industry know it as the home of low interest rates. Usury laws prevent Arkansas banks from charging credit card customers interest rates more than 5% above the federal funds rate. While they decry their status, some Arkansas banks have turned restrictive legislation into a competitive advantage by touting their rates as the lowest in the country.

According to the July-August issue of CardTrak, RAM Research Corp.'s low-rate survey, Metropolitan National Bank of Little Rock, along with Federal Savings Bank of Rogers, offer the lowest credit card interest rate in the national market - 8.40% - excluding banks that Offer introductory rates. Metropolitan National requires a $25 annual fee, while Federal Savings Bank charges $33.

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