Sainsbury's launches lowest balance transfer fee

Credit cards

Sainsbury's Bank has introduced a new credit card with the lowest balance transfer fee on the market.

The Sainsbury's Nectar Low BT Fee Credit Card charges a transfer fee of just 0.5%. That compares to a hefty 3.3% for the HSBC Credit Card, which is one of the biggest transfer fees in the market.

The supermarket's card is also interest free on balance transfers and purchases for 12 months.

After the interest-free period on the supermarket bank's new card is up, a representative APR of 18.9% applies.

Customers using their card in-store or online at Sainsbury's earn four Nectar points per £1 spent, which the supermarket said is the equivalent to 2% back on Sainsbury's shopping.

They'll also earn one point for every £5 spent elsewhere - including while abroad.

Cardholders will also get an additional three points per £1 spent on fuel at Sainsbury's forecourts, compared to the one point per litre all Nectar cardholders normally receive.

Meanwhile, the supermarket already has the cheapest low-rate credit card on the market. The Sainsbury's Nectar Low Rate Credit Card has an APR of just 6.9% and no balance transfer fee.

Nationwide's Select Credit card, which has a transfer fee of 2.4%, is one of the few balance transfer cards to have a longer 0% period on purchases, at 15 months.

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