Sainsbury’s Bank launches longest ever 0% balance transfer credit card
Credit card holders can enjoy three-and-a-half years at 0%, but should still shop around
SAINSBURY'S Bank has launched a new balance and money transfer credit card giving borrowers 42 months at zero per cent interest.
The 42 month deal is the longest ever offered by any lender, pipping Virgin Money's, Halifax's and MBNA's 41-month offerings to the balance transfer post.
But, Sainsbury's lengthy deal comes with a catch in the shape of a four per cent fee on the balance being shifted from an existing credit card in the first three months.
After three months, the fee drops to three per cent of any balance being transferred, with a minimum £3 fee applying regardless how much you transfer across.
For the first three months, purchases made on Sainsbury's new card attract a zero per cent interest rate. After that, it shoots up to 18.95 per cent.
Anyone wanting Sainsbury's new card shouldn't hang around as applications close on 31 October. The deal is not open to existing Sainsbury's Bank credit card holders.
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New customers with a Nectar card will be able to get 5,000 bonus Nectar points if they use the card to spend £800 on Sainsbury's shopping or fuel in the first three months.
Lenders are embroiled in a fierce battle to tempt new customers to apply for their cards. But, as with most things in life, it's quality, not quantity that matters. No matter how long the zero per cent deal lasts for, it pays to look at the finer details.
Andrew Hagger, of Moneycomms.co.uk, said: "The 0% balance transfer market war shows no signs of abating, but customers need to look beyond the term - it's the overall cost, including the one-off balance transfer fee and any incentives that can often offer a considerable financial saving just for opting for a month or two shorter than the longest term on the market."
Taking one example, with Sainsbury's new 42 month deal, transferring a balance of £3,000 with a four per cent one-off transfer fee would cost £120.
But, with Virgin Money's 41 month balance transfer card attracting a lower one-off fee of 3.29 per cent of the amount being shifted, borrowers would fork out £98.70 rather than £120.
With MBNA, borrowers can get a 41 month zero per cent balance transfer card by shelling out a 3.49 per cent one-off fee on the amount being moved across. But, MBNA also offer a £20 Amazon voucher with their deal, meaning customers would only shell out £84.70 on a £3,000 transfer.
To get the best zero per cent balance transfer credit card deal, it pays to work out what your individual needs are.
Some comparison websites, including MoneySupermarket and MoneySavingExpert have tools which let you search for the best credit card without leaving a mark on your credit score.
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