Nationwide is the first credit card provider to break with the zero per cent interest rate trend on credit card balance and transfers.
The building society is offering customers who open a classic or gold credit card account a 4.9 per cent interest rate on balance transfers for 12 months.
The deal includes zero per cent interest on purchases for nine months with no balance transfer fee to be paid if you are switching from another card.
Jim Willens, Nationwide’s group services director, said: “This cardÖhas one of the lowest ongoing balance transfers rates and a genuine zero per cent deal on new purchases.
“We don’t charge commission when our cards are used abroad and our customers get to pay off the most expensive debt first.”
Nationwide has criticised other credit card providers for deceptive zero per cent interest rate deals on credit cards. It claims that often there is a transfer fee to be paid of two per cent of the total balance, which adds to the customer’s debt.
The credit card industry suffers losses of £1 billion a year because of people who switch from one zero per cent introductory interest rate deal to another.
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