NatWest and RBS have launched the Platinum MasterCard, boasting 26 months of 0% interest and a lower transfer fee than Barclaycard.
NatWest and Royal Bank of Scotland (RBS) have moved into poll position in the 0% balance transfer credit card market.
Changes to the Platinum MasterCard have shoved the previous market leader, Barclaycard, from the top spot.
The NatWest/RBS Platinum MasterCard now offers 0% on balance transfers for 26 months, up from 24 months.
But the fee on the Platinum MasterCard has also been amended, falling from 2.9% to 2.65%, so you can now get the best deal going for less.
Balance transfer credit cards
A balance transfer credit card can help you to get back in control of your finances.
0% balance transfer deals enable you to freeze credit card debt, giving you time to pay it back in stages without worrying about interest payments.
And there hasn’t been a better time to do it. At the moment there are loads of offers lasting more than 24 months - that’s over two years to clear the debt you move over.
But the length of the deal isn’t the only factor to think about when selecting a card; you also have to think about the balance transfer fee, which represents the one-off cost of moving the debt over.
Balancing the two factors can be a challenge especially as the longest-lasting deal doesn’t always command the most expensive fee and vice versa. The changes from NatWest and RBS for example, have made the longest lasting balance transfer cheaper than some deals that don't last as long!
Longest lasting deals
Below I have picked out deals that last 24 months or more to see how the changes from NatWest and RBS stack up.
|
Credit card |
0% balance transfer period |
Balance transfer fee |
Cost of transferring £2,500 |
|
26 months |
2.65% |
£66.25 |
|
|
26 months |
2.65% |
£66.25 |
|
|
26 months |
3.5% (minus £10 when you transfer more than £2,000) |
£77.50 |
|
|
25 months |
2.4% |
£60 |
|
|
25 months |
2.5% |
£62.50 |
|
|
25 months |
2.9% |
£72.50 |
|
|
MBNA Platinum |
24 months |
2.85% |
£71.25 |
|
24 months |
2.89% |
£72.25 |
As it stands the Barclaycard 26-Month Platinum Visa is the most expensive longer-lasting deal, charging 3.5%, which is 0.85% more than NatWest and RBS. However, you can currently get £10 off when you transfer more than £2,000.
But even with the discount you still have to pay £11.25 extra when transferring a £2,500 balance.
However, Barclaycard is rarely off the top spot for long so it could respond by extending the length of its deal or slashing the fee to make it more competitive.
[SPOTLIGHT]You can keep up to date on the best deals in our article: The best 0% balance transfer credit cards.
Saving money
If you’re chasing the cheapest balance transfer card rather than the longest lasting, the Halifax All in One credit card charges just a 1% balance transfer fee meaning you only pay £25 to relocate £2,500 worth of debt.
The card comes with 15 months 0% on balance transfers, which is 11 months less than the NatWest/RBS deal, but it also comes with 15 months interest-free on new purchases – allowing you to spend and save with one card.
The NatWest/RBS Platinum Low Balance Transfer Fee Credit Card also comes with a 1% fee but the 0% period lasts just 13 months on any debt you move over.
Card games
A balance transfer credit card is a handy tool, but it won’t stay interest-free forever.
If you haven’t paid off the balance you transfer by the end of any introductory offer your debt will start building up interest again - on the NatWest/RBS Platinum MasterCard you will be charged 18.9% APR after 26 months.
Once your deal ends you could try transferring whatever you have left onto another balance transfer credit card, but there is no guarantee you will be successful.
More on credit cards:
The best cashback credit cards
The best 0% purchase credit cards