The start of the new year serves, for many, as a time to reflect on a whole host of aspects of life – and this can include personal finances. Whether festive spending sparks the need to tighten the purse strings or the start of the new calendar year prompts a New Year’s Resolution, many may well be taking a look at everything from savings to credit card debt this month.
The start of January is a time when many look to take advantage of balance transfer offers, leading Sainsbury’s Bank to launch new rates across its credit card range.
This includes the Balance Transfer Credit Card, offering up to 29 months at an interest rate of zero percent on balance transfers.
However, the bank warns customers may be offered a zero percent interest period of 25 or 21 months instead.
Furthermore, a balance transfer fee of three or four percent applies on transfers made at application (minimum £3), depending on the person’s individual circumstances.
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The charge will depend on the current offer thereafter.
This product replaces Sainsbury’s Bank Balance Transfer 28 Month Credit Card.
The bank’s customers made more than double the number of balance transfers between January 1 and March 31, 2020, up 111 percent from the same period in the year prior.
Furthermore, the number of balance transfer credit cards taken out with Sainsbury’s Bank more than doubled in this time period from 2019 to 2020.
Between January 1 and March 31, 2020, the average value of balance transfers to Sainsbury’s Bank credit cards was £1,114.
Jason King, Customer Director at Sainsbury’s Bank said: “Following Christmas spending, the new year is usually a popular time for people to take a look at their finances and ensure they’re getting the best deal on their credit cards and other financial products.
“That’s why we are committed to providing our customers with zero percent balance transfer deals, along with regular rewards for Nectar customers on their everyday shopping.
“Offering a balance transfer period of up to 29 months, our Balance Transfer Credit Card could help make a difference to people’s pockets in the New Year.”
These rates were effective from December 22, 2020.
Other product changes announced by the bank include the Sainsbury’s Bank Low Fee 26 Month Balance Transfer Credit Card.
This product will offer up to 26 months at zero percent on Balance Transfers, however a zero percent interest period of 18 months may be offered instead.
A balance transfer fee of two percent applies on transfers made at application (min £3).
The charge will depend on the current offer thereafter, the bank said, adding that the product will replace the borrower’s current Low Fee 25 Month Credit Card.
The Sainsbury’s Bank Low Fee 18 Month Balance Transfer Credit Card will offer up to 18 months at zero percent on balance transfers, although it may be this zero percent interest period is offered for 12 months instead.
A balance transfer fee of zero percent or 0.5 percent applies on transfers made within the first two months, depending on individual circumstances.
The charge will depend on the person’s current offer thereafter, and this product will replace the bank’s current No Fee Credit Card.
The Sainsbury’s Bank Dual Offer Credit Card will offer up to 19 months at zero percent on Balance Transfers and Purchases, although this may be offered for a period of 12 months instead.
A balance transfer fee of three percent applies on transfers made at application (min £3), and the charge will depend on the current offer thereafter.
This replaces Sainsbury’s Bank’s current 20 Month Dual Offer Credit Card.