Nationwide launches cheapest-ever balance transfer fee

Credit card

Nationwide Building Society has launched a 0% balance transfer credit card deal with the lowest fee ever.

The card, which offers 26 months at 0% on balance transfers, comes with fee of just 0.75%.

That's at a time when the average balance transfer fee on the top 10 balance transfer cards is currently 2.84%.

So compared to that average fee, someone transferring a balance of £3,000 would save £62.70 with the Nationwide deal.

The lowest-ever balance transfer fee follows in the wake of Barclaycard launching the longest-ever balance transfer 0% deal at 31 months.

However, the Barclaycard Platinum comes with a balance transfer fee of 2.99% - and the lender initially charges you 3.5% before 'refunding' you the difference two days later.

Cat amongst the pigeons

Commenting on the balance transfer war currently being waged by the card companies trying to outdo each other, Andrew Hagger of said: "This latest deal from Nationwide will really throw the cat amongst the pigeons in the credit card market.

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"The combination of a long interest-free term and ultra-low balance transfer fee is likely to see the credit card big boys - Barclaycard, MBNA, Halifax and Tesco Bank - scrambling to review and revamp their own card deals.

"For so long now it's been a case of longer and longer interest-free deals with fees of around 2.8% to 2.99% but Nationwide has ripped up the rulebook with this outstanding credit card offer - a bold move and a very positive one for consumers."

Kevin Mountford, head of banking at MoneySuperMarket, added: "Nationwide's move is the first time a credit card provider has significantly reduced the balance transfer fees and means some of the rules about picking the best balance transfer card no longer apply as in many instances a card with a shorter promotional period but a very low fee will be cheaper."

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