We use a minimal number of cookies to enhance your browsing experience - you can change your settings at any time.
checkmyfile
The UK's only Multi Agency Credit Report

Take a FREE 30-day no obligation trial. Call 0800 612 0421 9am-5pm, Monday to Friday for help.




  
Forgotten Password? Not a Customer? Sign Up

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 kevin.pearce@checkmyfile.com

Kevin Pearce

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

Related Articles

A nation on standby

The Energy Saving Trust describe us as “a nation on standby” as they reveal tt we are wasting up to £80 per household per year by leaving our electronic devices on standby rather than switching them off. It’s believed that many do not realise the difference in switching appliances off all together in comparison to leaving them on standby – but with the hidden high levels of energy consumption.

Philip Sellwood of the Energy Saving Trust, says, “Whatever your age, gender or the size of your household: our research has found millions of us are unintentionally wasting electricity when we leave our gadgets on standby. It’s an easy mistake to make yet it costs us a fortune”.

The Energy Saving Trust released their statement as an Ip .....

23 Oct 2014 by

Jasmin Stopford

 in 

Personal Finance

Full Article

ICO continues to fine nuisance call companies

The Information Commissioner's Office (ICO) have fined yet another ‘nuisance call’ company who have failed to adhere to their legal requirements under the Privacy and Electronic Communications Regulations Act.

EMC Advisory Services Limited, a Payment Protection Insurance (PPI) claims company, have been fined £70,000 for contacting individuals regardless of whether they are registered on the Telephone Preference Service (TPS). TPS operates a ‘do not call’ list, which means that marketing companies have to ensure that they do not phone people on this list, without previously having the permission to do so. It is a legal requirement that companies do not make sales calls to those on the list.

EMC Advisory Services Limited was re .....

22 Oct 2014 by

Kevin Pearce

 in 

Personal Finance

Full Article

If you have a Standard Life policy read on...

Standard Life policyholders owed an average of £3,000 need to step forward to stake their claim

21 Oct 2014 by

Sophie Regester

 in 

Personal Finance

Full Article

Accepted Payment Methods: VISA, MasterCard and Direct Debit

© Copyright Credit Reporting Agency Ltd 2000 to 2014. All Rights Reserved.

United KingdomAustraliaGive Me Credit United States

Customer Feedback