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

Take a FREE 30-day no obligation trial. Call us free on 0800 612 0421 from 8am to 6pm today.

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

Students use payday lender to cover costs

Student life can at times be pretty hard – especially when you look in your purse to buy some 10p noodles and can only find 8p. That happened to me once – I think I probably just didn’t buy them and took some time to reassess my spending habits.

While way back in the early noughties we relied on part time wages and student loans, today’s students are finding new ways to make ends meet. A new survey by Unite Students has found that young people are increasingly finding an answer in the short term loans industry – often called payday loans.

A survey of 8,500 UK students found that rising living costs of more than 12% in a year also meant extra borrowing. They predict that over 30,000 students depend on payday lenders in the U .....

3 Jul 2015 by

Kelly Luff


Personal Finance

Full Article

Average wedding now costs £24,000

They say that you can’t put a price on love. But it turns out the average price is now £24,000, if you are looking to officially recognise that love by law. That’s the average price of a wedding, according to Brides Magazine, although happily for the father of the bride, he is now not expected to cover the increasing cost of the day.

Only 18% of fathers now pay for the whole wedding, but many parents are still expected to stump up a fairly sizable contribution to their children’s nuptials, often offering generous donations to the day. Around a third of those getting married pay for the day themselves.

With everything associated to weddings often costing twice as much as if it were associated to any other celebration, it is e .....

2 Jul 2015 by

Kelly Luff


Personal Finance

Full Article

Greece – holiday money tips

As Greece goes into arrears with the IMF and the Greek Government looks to a hurried referendum, what are your holiday options?

2 Jul 2015 by

Barry Stamp


Personal Finance

Full Article

Accepted Payment Methods: VISA, MasterCard and Direct Debit

© Copyright Credit Reporting Agency Ltd 2000 to 2015. All Rights Reserved.

United KingdomAustraliaGive Me Credit United States

Customer Feedback