Post Office slashes balance transfer fee on Platinum Credit Card

You can now enjoy 18 months of 0% interest and a transfer fee of just 0.7% with the Platinum Credit Card from the Post Office.

The Post Office has cut the balance transfer fee on its Platinum Credit Card down to 0.7%.

The card is now arguably the best low-fee balance transfer card in the market, as it offers a whopping 18-month 0% period on transfers, as well as 0% on purchases for three months. It has an representative APR of 17.8%.

Cutting the cost of your balance transfer

Getting your balance transfer right is a bit of a balancing act. You need to get a sufficient 0% period in which to clear your debt, but pay the smallest transfer fee possible too.

Just last week Sainsbury’s Bank took top spot in the tables by launching the cheapest balance transfer credit card around, the Sainsbury's Bank Nectar Low BT Fee, which charges just 0.5% of the balance you are moving onto the card. However, the 0% period is just 12 months.

The table below runs through the cheapest cards on the market today.

As the table below shows, there are longer 0% periods out there but you’ll pay a higher fee for your transfer.

Credit card	0% period on balance transfers	Balance transfer fee	Cost of transferring £2,000 balance	Representative APR
Sainsbury's Bank Nectar Low BT Fee	12 months	0.5%	£10	18.9%
Tesco Clubcard Credit Card with Low Balance Transfer fee	12 months	0.65%	£13	18.9%
Post Office Platinum MasterCard	18 months	0.7%	£14	17.8%
Bank of Scotland Platinum Balance Transfer MasterCard	15 months	0.7%	£14	17.9%
Lloyds Platinum MasterCard	15 months	0.7%	£14	17.9%
Santander Credit Card with Low Transfer Fee	17 months	0.9%	£18	18.9%
Halifax 24-Month Low Balance Transfer Fee	24 months	1.5%	£30	18.9%
Lloyds Platinum 24-Month MasterCard	24 months	1.5%	£30	17.9%
Bank of Scotland Platinum 24-Month MasterCard	24 months	1.5%	£30	17.9%

I think the table above demonstrates why I think the Post Office Platinum is the best low-fee balance transfer card around. For just a couple of extra pounds compared to the Sainsbury’s and Tesco cards you get an extra six months in which to pay off your debt.

Let’s take that £2,000 balance transfer example. To pay it off by the end of the 0% period with the Sainsbury’s card (including the fee) you would need to pay £167.50 a month. However with the Post Office card that monthly repayment would drop to £111.89, more than £50 less a month.

I need longer!

But what if 18 months just isn’t enough to clear your balance? What if your debt is more significant, or you just can’t afford to pay even £111 a month to get rid of your existing credit card debt?

The table below breaks down the cards with the very longest 0% periods. But with those extra months of 0% interest comes far higher transfer fees.

o pay right now, as the table below shows.

Credit card	0% period on balance transfers	Balance transfer fee	Cost of transferring £2,000 balance	Representative APR
Barclaycard 32-Month Platinum Visa	32 months	2.99%	£59.80	18.9%
Barclaycard 31-Month Platinum Visa	31 months	2.89%	£57.80	18.9%
MBNA 31-Month Platinum	31 months	2.89%	£57.80	18.9%
Halifax 31-Month Balance Transfer MasterCard	31 months	3%	£60	18.9%
Tesco Clubcard Credit Card for Balance Transfers	30 months	2.9%	£58	18.9%
HSBC Credit Card*	30 months	3.3%	£66	18.9%
Sainsbury's Bank Nectar Credit Card	29 months	2.89%	£57.80	18.9%
Arsenal/Aston Villa/Chelsea/Liverpool/Manchester United/Tottenham Hotspur credit cards	29 months	2.89%	£57.80	18.9%
Fluid Balance Transfer Card	29 months	2.9%	£58	18.9%
Virgin Money MasterCard	29 months	2.99%	£59.80	18.9%
Santander 29-Month Balance Transfers	29 months	3%	£60	18.9%

*HSBC current account customers only

Compare the balance transfer cards with the longest 0% periods

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Why cash and credit cards don’t mix

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