Interest on interest?

Fairzo

It's been a while since I closed a credit card that I have been paying interest on but have just transferred a balance from American Express to Santander 0% for 12 months. Got the Amex statement today which had £4.30 interest on so have paid that immediately. My question is will there be a small amount of interest on the interest on next months statement or have I now paid it off and can close the account?

Thanks

cifpower

Once you pay two months in full there will be no extra residual interest to pay

Fairzo

Thanks, so if I understand correctly I paid the full statement balance last month and the interest this month so it's now paid off completely? Not trying to appear dim, just making sure

exel1966

Fairzo wrote: »

It's been a while since I closed a credit card that I have been paying interest on but have just transferred a balance from American Express to Santander 0% for 12 months. Got the Amex statement today which had £4.30 interest on so have paid that immediately. My question is will there be a small amount of interest on the interest on next months statement or have I now paid it off and can close the account?

Thanks

Yep, there will be a small amount of residual interest to be paid. One way to minimise this would have been to slightly overpay, therefore stopping the addition of residual interest in effect.
You could still minimise the amount by making a small payment now, but on such a small amount you'd only be saving a few pennies.

Fairzo

OK thanks. It was on a lifetime balance interest of around 5% too so it certainly won't be much.