The best credit card deals for 0% transfers

Austerity chic is now the order of the day with everyone looking around to save money and play their part in the new belt-tightening regime ushered in by Cameron and Clegg.  

Credit card companies are playing their part and there have been some new offers of 0% balance transfer deals – and a big increase in the number of companies offering 0% on purchases. According to Moneyfacts, in the last year the number of cards charging no interest on new purchases for at least 10 months has increased from two to 11, while the number of cards offering 0% on balance transfers for at least 10 months has increased from 60 to 64.  So there is plenty choose from.

The downside is that interest rates charged on cards continue to increase, with the average credit card rate today standing at 18.7% APR. Since the start of the year Barclaycard has upped its rate by 2.0% while customers at Capital One Bank have seen their rate rocket by 5.0%.  Egg has added 1% as has MBNA Europe while Sygma bank has slapped an extra 2% on their interest charge.

If you are looking for a balance transfer deal, bear in mind that MBNA, Nationwide, SAGA and The Co-operative Bank all offer a ‘positive repayment order’ which means that your monthly repayments are set against the most expensive borrowing first, and do not jeopardise your 0% balance transfer concession.

Best buys for those looking for 0% on purchases are Sainsbury’s Finance Mastercard, available only to Nectar Card Holders, and Barclaycard’s Platinum Visa, both offering 0% for 12 month and an interest rate when you do start paying of 15.9%.  If you are a Tesco fan you might prefer the Tesco Mastercard on which you get Clubcard points worth cash too.  This also offers 12 months on purchases at 0% as does the Virgin Money 12/12 Mastercard – but both have higher interest charges of 16.9% and 18.9% respectively when you start to pay interest.

The top slot for 0% balance transfer has been taken by Clydesdale/Yorkshire Banks with their Gold Mastercards offering 16 months at 0% with a 3% fee on the amount transferred.  In second place are Santander, NatWest/RBS with it Platinum Mastercard and Barclaycard’s Platinum/BT card, all with 15 months at 0%.  Santander has a 3% fee on the amount transferred and NatWest and Barclaycard 2.9%.