Sainsbury’s increases interest free period on credit cards

The supermarket giant Sainsbury’s has been offering a range of financial products and services over the years, including some very competitive deals on credit cards.

According to recent reports the retail giant has now announced that its credit cards – which already offered an attractive ten months interest free credit on purchases – will now be offering an increased interest free period of twelve months, which is likely to attract increased custom as well as placing the cards amongst the top of the best buy tables.

Officials from Moneyfacts have stated that the cards are all the more attractive because they also offer a low rate life of balance transfer facility, so in addition to enjoy twelve months of interest free credit on purchases customers can also transfer costly existing credit card balances and enjoy a low rate of interest for the life of the transferred balance – the rate currently stands at 5.94%. The standard variable rate on the credit cards is 15.9%.

One official from Moneyfacts stated: “The standard and platinum deals were already competitive, but extending its offer to 12 months pushes its standard card to hold joint top position of the moneyfacts’ best buys, along with Halifax and HSBC, with all three offering a standard revert to rate of 15.9% APR. The Platinum card offer is market leading, with the next best interest free offer at 11 months. These cards also come with the added benefit of a lifetime balance transfer deal at 5.94% pa, which in today’s market is a pretty competitive. Combined with the 0% offer, these deals are a very attractive overall package.” 

She added that the Sainsbury’s credit cards were now looked upon as a five star deal, as they offered savings on both transferred balanced and purchases, making them great value and convenient.

Tom Smith
5th September 2007

Tags: introductory, balance, sainsburys, offer, credit, transfers, platinum, increased, card, purchases

Credit Card Deals In Different Categories

Looking for a credit card?
What deal are you looking for?
Here are the best three deals in certain categories, depending upon what you are looking for.

These are some of the best balance transfer credit card rates currently available.

Mint Credit card
This has a free interest balance transfer until 1 August 2008, and a 2.5% transfer fee. There is zero percent on purchases until 1 January 2008, and another six months at zero percent for balance transfers made in October 2008. The interest free period works out at 54 days. The APR on purchases is 14.9%. The transfer or handling fee is one of the lowest at 2.5% and over a year at zero percent on balance transfers. That’s a good period, and with zero percent on purchases till January you have a long period of free money – just be careful to tie things up before you go onto regular interest rates.

Capital One Platinum card
This has a 3% handling fee and zero percent interest on balance transfer until 1 July 2008. The APR on purchases works out to 15.9% and the interest free period is 54 days at maximum. The card also comes with three months worth of free credit on purchases. This has a shorter period than the Mint and a shorter period for both the balance at zero percent and for purchases.

Barclaycard Premium
The zero percent interest on balance transfers lasts until 1 July 2008 with a 2.9% fee. The interest free period works out at 56 days maximum. The APR on purchases is 14.9%. The card comes with various insurance protection deals and three months of free interest on purchases. This has a similar period to the Capital One Platinum but a slightly lower handling fee.
Of the three Mint looks the best.

What about the best life of balance rates? These are rates for borrowers who are fed up of continually transferring their balances.

M&S &More card
The life of balance interest rate is 4.9%, and there are no fees. The APR on purchases works out at 19.9% with a maximum interest free period of 59 days. The card also has zero interest on purchases until 31 January 2008 and &More reward points on purchases. The zero percent interest on purchase makes this attractive.

Citibank Platinum Mastercard
The life of balance interest rate is 4.9%, and there is a fee of 2.5%, which is capped at £75. The APR on purchases works out at 16.9%. The card also has 0.5% cash back on all purchases and comes with Identity Theft protection. The cap at £75 only kicks in if you have a balance greater than £3000, but the cash back could make this seem tempting. Apply now

Sainsbury’s Bank Platinum card
This has life of balance interest rate of 5.9% no transfer fee. The APR on purchases works out to 15.9. The card comes with ten months free credit on purchases. The free credit on purchase make this card look a good bet, as the ten months will take you further than the M&S option. M&S’s reward points might swing it for you.

Now onto those cards with the best APR rates on the market? This is for steady card owners who don’t want to switch, but want a good interest rate.

Barclaycard Simplicity
This has an APR of just 6.8%. There is no balance transfer available. The maximum interest free period is 56 days. The card comes with various insurance products, but these may of limited use to you. The low APR may be the key.

Egg Money
The APR is 7.9%, with no balance transfer available. The maximum interest free period is 50 days. The card has one percent cashback on all purchases. The APR is attractively low, and the cashback may make this a good bet for you.

Intelligent Finance Flat Rate
This has an APR of 8.9%, with no balance transfer available. The interest free period is up to 59 days, and the card comes with no extras. Compared to Barclaycard’s Simplicity and Egg’s card this has no frills and a higher APR, so the other look to give a better deal.

Finally here are the top three card for cashback deals. Here card holders earn cashback on their spending.

American Express Platinum card
The cashback offer is 3% for the first three months, followed by 1.5% on balances over £10,000. The APR on purchases works out at 14.9%. There is no balance transfer offer and the interest free period is 56 days. The card has online fraud and purchase protection benefits. If you’re after a cashback deal, then three percent is the best you can get, but you’ll need to have no need of a balance transfer. The other benefits are probably of limited value. Apply now

Egg Money
The card has one percent cashback on all purchases. Selected dealers have a higher cashback rate, e.g. electrical goods from Dixons.co.uk earn 5% cashback. The APR is 7.9%, with no balance transfer available. The maximum interest free period is 50 days. The card has one percent cashback on all purchases. If you think you’ll be buying a lot of electrical goods from Dixons, then this card will probably come out as better than the American Express option. But overall the Amex card has a wider appeal.

CitiBank Online Platinum card
The cashback offer is 0.5% up to £3,000 per month. The APR works out at 16.9%. There is a balance transfer offer of 4.9% for the life of the balance. The interest free period is 56 days, and there are no additional benefits. This is third best on cashback – by quite a way. Apply now

It is best for you to understand your requirements and look at your outstanding balance and future spending before you choose yourself a card. Getting a particular card for your specific requirements can work for a set period.

Tom Smith
13th June 2007

Tags: offers, balance, back, deals, credit, transfers, cash, cards, current

Online banking is booming

Ten years ago the Nationwide Building Society started the huge phenomenon that has become online banking.

And as we reach a decade of banking via the Internet it seems that this method of dealing with finances and applying for banking services has become more popular than ever. There have been some concerns over the ease of banking fraud via the Internet, but with increasingly stringent safety measures in place and customers becoming savvier than ever when it comes to security, online banking continues to thrive.

One of the UK’s leading banks, HSBC, as reported an increase of fifty five percent in terms of its online business. According to recent figures around eighteen million people in the UK now use the Internet to deal with their finances and manage their bank accounts, and HSBC alone has received nearly two billion visits.

At a recent Annual General Meeting the chief executive of HSBC stated: “More and more of our personal and commercial customers are seeing the benefits of buying online. Our websites handled 1.8 billion visits last year and online sales increased by 55 per cent.”

He also stated that the bank was starting to move more towards interaction with customers through the Internet rather than through the branch.

A number of banks that are trying to encourage customers to deal with them online have offered various incentives and rewards such as increased interest rates on savings and bonuses – this is because it is easier, faster, and more time effective for banks to deal with customers in this way rather than through a branch.

When banking online customers can make bill payments, transfer cash, check balances, apply for services such as credit cards and loans, set up and cancel direct debits and standing order, and more.

Tom Smith
11th June 2007

Tags: Banking, online, bills, services, accounts, bank, interest

Even more convenience for A&L customers

Following in the footsteps of HSBC and First Direct, the Alliance & Leicester has revealed plans to introduce a new method of banking that will offer consumers even more in the way of convenience and flexibility – mobile banking. Consumers in the UK that have accounts with major banks and building societies can already enjoy the convenience and ease of Internet banking in addition to using the facilities and amenities available at the local branch. It seems that mobile banking could be the next big step for many banking companies.

Through the use of the mobile banking service on offer from the Alliance and Leicester, consumers will be able to quickly and easily check on recent transactions that have been made, will be able to check their balances, and will even be able to top up their mobile phone credit directly from their bank accounts. In the future, according to officials from the Alliance & Leicester, consumers will also be able to make money transfers and pay bills from the account.

For those that want to take advantage of this mobile banking service, registration will be made easy and simple, and can be done via the Internet or via the mobile phone. One spokesperson from the bank stated: ‘There has not been much technical integration and all we need to do is verify the customer and their bank account details, so it has been straightforward.’

One research analyst says that over time consumers will become used to this updated method of banking, as it means that they will have one more valuable facility to help with the smooth-running of their finances and accounts. However, he added: ‘It is taking consumers a while to use their mobile phones for more than voice calls, and it is difficult for a bank to teach people to use them in another way.’

Tags: interest, payments, account, cost, transfers, bank, charge, online

Choosing the right card

Choosing a credit card can be a process full of heartache and confusion; there are so many to choose from. But do they really offer different benefits?

Whether you are venturing into the world of credit for the first time or are thinking of changing your card, we examine the process of choosing a card and reach some interesting conclusions.

Loads of money!

It was clear some decades ago that credit cards were here to stay. In the late seventies there were articles on TV and in newspapers that soon we wouldn’t use cash any more – no more paper and no more heavy coins jangling in the pockets.

It hasn’t quite gone that way, but certainly these days it’s a question of which card to choose not “do I want one?”

Everybody’s different

What type of credit card user are you?

There are some very set patterns that go to make up the million or so credit card users in the UK today. There are so many of us that all together we owe in the region of £180 billion. And that’s a lot of interest!

Pay it off

Do you clear your balance every month? If you are one of these tidy users then really the market is completely open to you as you won’t have to concern yourself with how much interest the credit card company charges. It would be worth casting an eye around the market though just to make sure you’re aware of what is on offer.

To pay it off, or not pay it off, that is the question

If you use your card for regular purchases each month and usually pay off those regular sums but occasionally run up larger bills, perhaps at holiday time or Christmas, then you do need to be aware of how much interest you are being charged.

You should also examine how long the interest free period is offered on the card. Most companies will give you between 56 and 59 days interest free credit, but a rare few don’t give any!

The hole in the wall

If you are going to use your credit card to obtain cash then you are going to get stung anyway you look at it. Going to the hole in the wall will incur interest on the cash as soon as it’s in your hand; there are no interest free periods with cash transactions.

Check to see what rate the company charges for cash; it’s bound to be higher than other rates on the card.

A debt is a debt is a debt

If you are somebody who has run up a debt, or is likely to run up a debt, on your credit card and lets it sit there, then you really do need to go for the cheapest option you can get your hands on.

There are two schools of thought for outstanding balances. Some people say chose a credit card that has a low interest rate for the life of the balance and stick with it. Some people say go for the zero rate promotions and switch when they come to an end. We say it’s up to you.

Buyer beware

If you are going to change between zero rated cards and become a bit of a ‘rate tart’ then you will need to keep an eye on how often you do so and whether there are any penalties charged when you transfer to the next zero rated account.

Switching from card to card for the zero rated incentives can affect your credit rating. Credit card companies have now got wise to the fact they are losing something like £1bn a year in potential revenue by people taking advantage of their offers. So watch out for those fees.

Something for nothing

Credit card companies have also now introduced what are known as honesty boxes on their promotions. These show all the interest rates they charge and should be displayed in a clear understandable form, so you can easily compare like for like.

As far as other incentives are concerned there are cards out there that offer reward points or discounts at selected retailers, cashback, zero percent on goods purchased or even, on special charity cards, a small donation to a named charity every time you make a purchase. There will be one for you.

Choose your weapon

The credit card industry spends billions of pounds every year on encouraging users to transfer balances or to take out more credit. The different types of card on offer are staggering and have been developed to compete in the High Street wars of open finance introduced in the eighties. Today, some of the larger organisations like Barclaycard or American Express will offer several different cards each with their own unique benefits. These demonstrate that we all may be unique, but we each share the same type of habits when it comes to dealing with our finances.

Choose carefully, for your credit card can be your friend if used wisely in the fight to survive the daily financial grind or it can very easily become your enemy.

Tags: credit, best, cards, choose, transfers