Tesco Bank launches best buy balance transfer deal

Tom Wilson
4 March 2016

Tesco Bank has launched a new best-buy balance transfer card, giving customers 40 months to clear a credit card balance without paying interest, as well as offering 40 months 0% on money transfers.

It’s the joint longest 0% period on the market, matching Halifax’s Balance Transfer Credit Card, but with lower fees.

The balance transfer fee is 2.69%, equivalent to £80.70 on a £3,000 balance, marginally cheaper than Halifax’s 2.85% fee (£85.50 on a £3,000 transfer).

The fee for money transfers, which can be used to settle personal loans or overdrafts, is 3.94%, equivalent to £118.20 on a £3,000 balance.

The offer is available to people applying before 28 April 2016. After the introductory period, the interest rate is 18.9% APR representative.

For a roundup of the top 0% balance transfer deals, see our weekly balance and money transfers guide.

Moneywise verdict:

If you’re eyeing up the card to clear an overdraft, it’s the longest deal out there. But most people with overdraft debts shouldn’t need 3+ years to clear a balance; so it could be cheaper to pick a card with a lower transfer fee and a shorter 0% window.

There are fee-free balance transfer deals from Halifax and the AA, with 23 month and 22-month 0% periods, respectively, both 18.9% APR afterwards.

The lowest fee for a 0% interest money transfer offer meanwhile is Virgin Money’s 32-month money transfer card. The money transfer fee is 1.69%, or £50.70 on a £3,000 balance, and the APR after the 0% ends is 18.9%.

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