You are here: Home - Credit Cards & Loans - News -

Balance transfer cards: Halifax launches 41-month deal with 3.5% fee

0
Written by:
24/08/2016
Halifax has launched a new balance transfer deal offering 0% interest for up to 41 months.

It follows the announcement of Virgin Money’s record 41-month card last month.

Both however come with hefty fees. The Virgin Money card charges a 4% balance transfer fee, while holders of the new Halifax offering will pay 3.5%.

Details of the Halifax deal

After the 41-month 0% period, the Halifax fee drops to 3%. Balance transfers must be made within 90 days of opening the account and must be a minimum of £100.

Halifax has also launched a card offering borrowers 0% interest for up to 25 months with no fee. Again, balance transfers must be made within the first 90 days and be at least £100. After the 25-month 0% period, the fee jumps to 3%.

Verdict

A number of 40 month 0% interest balance transfer cards come with significantly lower fees. For example, Lloyds Bank and Bank of Scotland currently charge 2.41%. So it seems borrowers are being hit fairly hard for the one extra month of 0%.

On a £4,000 balance, you’d pay a balance transfer free of £160 with Virgin Money, £140 with Halifax but just £96.40 with Lloyds bank.

Andrew Hagger of Moneycomms.co.uk said: “It’s almost as if lenders are trying to reset the market rate higher for balance transfer fees to justify the longest i.e. 41 month deals.

“41 month deals may appear at the top of the best buy deals but you have to question why anyone would choose these over the raft of 40 month offers with a far lower fee.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Summer wedding: our reporter reveals her money saving tricks

YourMoney.com reporter Paloma Kubiak got married in Poland this summer. She reveals the tricks she used to keep the costs...

Close