Take advantage of cheap balance transfers with new cards from Santander.
Borrowers looking to take advantage of low-cost balance transfers have two top new cards to choose from courtesy of Santander.
Neither of the cards charge a fee for moving your balance over.
The most eye-catching card initially is the 123 card, which has been revamped to offer an incredible 23 months free of interest on balance transfers. It offers the same 0% period on purchases too, which is the longest interest-free period on spending ever. And on top of that it pays cashback on your spending, of up to 3%, depending on where you use the card.
However, there is a slight sting in the tail in the form of an annual fee of £24. So even though you aren’t moving over a balance, you are going to have to pay that fee. And if you keep the card for the full 0% period, that’s £48 in annual fees.
Arguably a better low-fee card is the Santander credit card, which offers a more modest 15-month 0% period. However, there’s no annual fee and no balance transfer fee ever.
How they compare
Let’s take a look at how these two cards shape up compared to the rest of the low-fee balance transfer market.
|
Credit card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Cost of annual fees for length of 0% period |
Representative APR after 0% period ends |
|
23 months |
None |
£0 |
£48 |
16.5% |
|
|
15 months |
None |
£0 |
£0 |
18.9% |
|
|
12 months |
None |
£0 |
£0 |
18.9% |
|
|
15 months |
0.55% |
£11 |
£0 |
15.9% |
|
|
15 months |
0.65% |
£13 |
£0 |
17.9% |
|
|
17 months |
0.9% |
£18 |
£0 |
18.9% |
|
|
24 months |
1.25% |
£25 |
£0 |
18.9% |
*Nationwide current account customers only
As you can see, the Santander cards both jump to the top of the table. However, when the annual fee is taken into consideration, the 123 card is not cheaper overall for a smaller balance transfer.
[SPOTLIGHT]That’s why I think the Santander credit card is the best option if you’re only interested in a low-cost balance transfer, rather than all the other bells and whistles that come with the 123 card.
I have a lot of debt to pay off
But what if you have a lot of debt on your card that you need to pay off? Clearing balances of £5,000 and above will not be easy in 15 months, even if you do save a few quid on the transfer fee.
The good news is that borrowers have never had such a wide range of lengthy 0% balance transfer deals to choose from. In fact the longest offer currently comes from the Barclaycard 34-Month Platinum. That’s almost three years before you have to start paying interest! Just bear in mind you'll pay a larger fee for the privilege.
For a full rundown of these cards, check out The best 0% balance transfer credit cards.
More on borrowing:
The best 0% purchase credit cards