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8.6 Million Credit Card Holders Plan To Switch To A 0% Interest Card

24 February 2015

    Around £21.5 billion could be transferred

    Sainsbury’s Nectar Balance Transfer Credit Card is interest free  for the first 33 months

Research(1) from Sainsbury’s Bank Credit Cards reveals that around 8.6 million savvy spenders could switch credit card providers in the first six months of the year to take advantage of a card charging no interest. This is equivalent to one in four (25%) of card holders who plan to transfer all or some of their outstanding balance to a new card.

The research(1) suggests around £21.5 billion could be transferred. On average, those seeking balance transfers expect to switch £2,500 to a new card, and 12% of ‘switchers’ intend to transfer more than £5,000. Switching balances to a 0% interest balance transfer card can dramatically reduce the interest paid.

Simon Ranson, Head of Banking at Sainsbury’s Bank said: “Our research shows a significant proportion of people are reviewing or intend to review their credit cards. This can be a worthwhile exercise, as many people could end up paying less or no interest on outstanding balances.”

The Sainsbury’s Nectar Balance Transfer Credit Card offers no interest on balance transfers for 33 months, the longest interest free period ever offered by the Bank. For those looking to pay off any transferred credit more quickly, the Bank offers the Sainsbury’s Nectar Low Balance Transfer Fee Credit Card which has a low balance transfer fee of just 0.5% for the first three months. Thereafter, a 3% fee applies. The card also offers customers 12 months to pay off their balance at 0% interest.

To keep the promotional rate customers must pay at least the minimum payment by the due date and stay within their credit limit.

Both cards also offer Nectar points every time customers use the card when shopping at Sainsbury’s and using their Nectar loyalty card at the same time. Points are also earned when making purchases at any other outlet, both in the UK and abroad.

For information on Sainsbury’s Bank credit cards call 0800 030 4429 or log onto www.sainsburysbank.co.uk/cards or pick up a leaflet instore at Sainsbury’s. Customers applying for a Sainsbury’s card should have their Nectar card ready when they apply.

This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.

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Notes to editors:

(1)   Based on online interviews with 2,012 randomly selected adults in Great Britain, as conducted by ICM Unlimited on behalf of Sainsbury’s Bank between the 17th -18th December 2014

Sainsbury’s Bank:

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Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.

Sainsbury’s Finance is a trading name of Sainsbury’s Bank plc. Sainsbury’s Supermarkets Ltd is an appointed representative of Sainsbury’s Bank plc. Sainsbury’s Bank plc, Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no. 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register no. 184514).