Halifax & MBNA minimum payments halved?

YorkshireBoy

I'm not familiar with MBNA business cards, but 2.9% LOB coupled with £25 minimums (if they're the same as personal cards?) sounds too good to be true. And you know what they say; "If it sounds too good to be true..."

Frugaldom

YB you seem to know about this kind of stuff, so here are the rates on the older monthly statements, perhaps you can decipher them:

Retail - 0.0547%
Cash - 0.0680%
Cheques - 0.0547%
BT - 0.0547%
Special pricing - 0.0080%

The new statements don't show the rates, they now show 'estimated interest due next month' but the amount equates to 2.9% even although I thought that ended last month.

YorkshireBoy

0.0547% monthly equates* to 0.66% APR so I'm not sure where your 2.9% fits in?

Regarding 'estimated interest', the trouble with MBNA is that you don't know your rate has gone up until you're actually paying it (if that makes sense?).

Probably best to ask MBNA for clarification on your personal rates and their expiry dates. Don't forget to take a name etc because I don't think they offer a secure messaging facility.


* http://www.moneysavingexpert.com/banking/interest-rates#calc

Frugaldom

OK, I think I have it sussed! I tried the calculator:

Annual interest of 2.9% means a monthly interest rate of 0.24%

When you add up all those tiny percentages - they total 0.24%, as per the following:

Retail - 0.0547%
Cash - 0.0680%
Cheques - 0.0547%
BT - 0.0547%
Special pricing - 0.0080%
TOTAL - 0.2401%

Now I'll need to wait until the next statement comes in to find out if it is life of balance. I was under the impression that the offer ended on 31st October, but the November minimum payment only works out at 0.004% of the overall total so I don't have a clue where that comes from or how they arrived at the figure. Bamboozled. I thought 1% minimum was brilliant, but 0.004% is beyond belief! I MUST be missing something.