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Adam Jolley

Tesco launches 30-month 0% credit card


Tesco Bank has increased the introductory interest-free period on its balance transfer credit card from 29 to 30 months.

Tesco credit card

A new deal means credit card holders can transfer their existing balances from other cards to Tesco’s Clubcard credit card and not pay interest for 30 months.

This new deal replaces Tesco’s existing 29-month 0% offer.

The transfer fee – the cost of moving your balance from one credit card to another – remains the same at 2.9%.

How does the Tesco Clubcard credit card compare?

The change keeps Tesco within touching distance of the top of the balance transfer credit card best-buy table.

The Barclaycard Platinum credit card currently sits in pole position, offering 31 months 0% interest on balance transfers for a 2.99% fee.

And Barclaycard is now offering £20 cashback when for you transfer more than £2,000 to this card or its 30-month 0% Platinum deal which has a 2.89% transfer fee.

MBNA has a new 30-month 0% deal on balance transfers and this card comes with a slightly lower 2.89% fee.

The Halifax credit card also offers 30 months interest-free on balance transfers, but for a higher transfer fee than Tesco at 3%.

Credit card price war

Since the start of the year several big-name credit card providers, such as Barclaycard, MBNA and Santander, have battled for new customers by launching new long-term 0% balance transfer deals.

Nerys Lewis, head of credit cards at, says: "Balance transfer cards can be useful to people with existing credit card debt to clear.

"The 0% interest periods mean cardholders can shift a balance from one card to another and, if they were paying interest on their old card, clear their debt while avoiding extra charges.

"The ongoing credit card price war means people looking for an interest-free deal won’t be short of options."

Tesco launches lowest transfer fee

Tesco has also made changes to its "low fee" balance transfer card by reducing the transfer fee from 0.85 to 0.65%.

The change means this credit card, which gives cardholders 12 months 0% interest, now offers the lowest transfer fee of any balance transfer card on the market.

Looking at similar low fee deals, the Fluid credit card, which also gives people 12 months 0% interest on balance transfers, charges a 0.75% fee.

Meanwhile, the Lloyds Bank Platinum and Bank of Scotland Low Fee credit cards both offer 15 months interest-free on balance transfers for a 0.7% fee.

0% credit cards versus low fee deals

If you’re looking to shift your credit card debt to a 0% card, but aren’t sure which type of deal is best for you, Lewis has the following tips.

"Both the Tesco cards offer 0% balance transfer deals but they sit at different ends of the market – one offers an extra-long interest-free period and the other comes with a low transfer fee.

"When deciding which balance transfer deal is best for you, one of the main things to look at is the amount of debt you want to shift to your new card.

"Then if you work out how long it will realistically take to pay this off it will determine the length of the 0% period you need."

Longer 0% deals often come with higher fees

Lewis adds: "If you think you’ll need around 30 months to clear your debt – then a card such as the Tesco 30-month deal might be the best option.

"However, if you could clear your debt in around 12 to 15 months you might want to consider switching to a credit card with a shorter interest-free period as it might have a lower handling fee.”

For example, if you transferred £2,000 to the new 30-month Tesco card you would typically pay a transfer fee of £58.

But if you transferred the same amount to Tesco’s 12-month low fee card you would pay a £13 charge.

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