Capital One is launching a new credit card which it claims has a market-leading low interest rate.

The deal will include the company's identity theft assistance scheme, which alerts customers by email if an application for credit is made in their name.

A typical variable rate of 8.5 per cent APR will apply to balance transfers and purchases and there will be no balance transfer fee.

Head of Capital One's operations in the UK Srini Gopalan says the company intends to be flexible and innovative and adds: "The combination of our low 8.5 per cent rate, no balance transfer fee and identity protection service makes this an attractive offer for our consumers at a time when we are conscious the purchasing environment remains a difficult one."

Last month Sainsbury's Credit Cards found that the average person would spend £305.90 in summer sales this year, with 42 per cent expected to be charged to a plastic card.

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