Cheap money transfer card launched
Posted in 'Personal Finance' by Kevin Pearce
27 July 2012
MBNA has launched a new card that allows new customers to transfer some of their credit card limit into their current account and pay 0 per cent interest for 15 months.
The Fluid card, as it has been named, has been brought to market because apparently there is a demand for such a product from within the UK market.
Will Becker, chief executive of Media Ingenuity says: ‘In conjunction with MBNA, we’ve created a card with an exclusive offer that can yield a substantial saving to consumers. This is a great card for people who are looking to get control of their finances and repay existing balances within the 15-month offer period.”
The APR on the Fluid Card is 15.5%
As always, it pays to check the small print the money transfer must be made within 60 days of opening the account and is subject to a 4 per cent fee.
Although this may seem no different than taking cash out and paying into your account, the fees are actually less than would be charged to do this.
An example of how this would prove beneficial is to clear an overdraft, for example. If your overdraft is interest free, there is no benefit in doing this, but if you are charged a high rate of interest (up to 20% in some cases) it could save you money in the long run. If you were on the verge of incurring penalties, it could be a good way to dig yourself out of that rut.
The interest free period is limited, so ensure you can repay it in the specified 15 month period to take advantage of this.
MBNA has launched similar products in the past and their success has led to the Fluid card with the specific focus on the money transfer to the current account.
The thirst for consumer credit is rising, with the latest figures from the Finance and Leasing Association showing a 9% increase in the amount of consumer credit taken out in April compared to the same month last year.
As a credit management tool, combining a balance transfer (for clearing credit cards on less favourable rates) with the ability to borrow cash (for debts or items that cannot be paid for by credit card) seems like a great idea, but it does tempt the less responsible to transfer money to their current account for non-essential items.
Essentially, as with anything, it is up to the user to act responsibly and take advantage of the greater flexibility offered with money/balance transfer.
For balance transfers to clear other cards (rather than to fund a current account), there are much more attractive deals available. The longest interest free transfer period is available from HSBC – at a very generous 23 months. A fee of 3.3% applies and the APR is 17.9%
Better still, the Barclaycard Extended Balance Transfer card has only a slightly shorter interest free period at 22 months, and a lower fee than the Fluid Card - at 1.45% compared to 1.5%, and an APR of 17.9%.
Kevin Pearce is a Credit Analyst at checkmyfile and has a degree in Media and Cultural Studies. You can contact Kevin at firstname.lastname@example.org
Kevin has a degree in Media and Cultural Studies from Southampton Institute. Prior to joining us, Kevin worked in the mortgage industry with GE. He covers several areas of credit and in particular the impact of the credit crunch on consumers.
Kevin is a Credit Analyst at checkmyfile
Standard Life policyholders owed an average of £3,000 need to step forward to stake their claim as time is quickly running out.
Those who have a share in the £113m have until 9th July 2016 to come forward after which point the money will be lost. In 2006 Standard Life demutualised and their 2.4m policyholders were left with an entitlement to shares or cash following the companies listing on the stock market. With less than two years to go until the deadline, 73,000 individuals have yet to claim what is rightfully theirs, including one person who is owed an estimated £120,000.
If you think this may apply to you the criteria to bear in mind is that you must have held a Standard Life with-profits policy that started before March .....
In recent years there have been a number of changes to how people can manage their pensions and the Treasury is now expected to add a little more freedom with regards to how savers can take lump sum payments from their pension.
Currently people are able to take a 25% tax-free lump sum from their pension from the age of 55. In the changes it is expected that savers will be able to make multiple withdrawals and that 25% of each payment will be tax-free.
Chancellor George Osborne states, “People who have worked hard and saved all their lives should be free to choose what they do with their money, and that freedom is central to our long-term economic plan”.
The chancellor wants people to be able to access as much of their .....
Research that reveals that as many as 60% of people aged 18-24 would take a short break in Europe without travel insurance
Page: 1 of 34