The new Bank of Scotland card, which is only available online, offers 15 months interest free on balance transfers for a fee of just 0.7%.

This compares to the 26 month deal with a 0.75% fee unveiled by Nationwide Building Society last month.

Commenting on the Bank of Scotland card, Andrew Hagger of moneycomms.co.uk, said: “It’s a pretty competitive offer in what is a very active sector at the moment – however the 26 month deal with a 0.75% from Nationwide BS remains the standout deal at the moment.

“However, if you’re 100% sure you can clear your balance within 15 months then the 0.7% ultra-low balance transfer fee is the lowest available for this term and will keep your switching costs to a minimum.”

Credit card providers have been stepping up their efforts to win new customers lately by launching deals focusing on the length of the 0% promotional period, but up until now there have only been some minor adjustments to balance transfer fees.