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.
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%.