Beware NatWest Balance Transfer fee interest sting

zerog

Am I missing something here? I thought the BT fee usually gets added to the balance that is transferred, thus incurring interest at 0% anyway? Does Natwest do this differently?

_Andy_

This thread is comedy gold. Absolutely love it.

Treadmill

I'm scratching my head here wondering how interest is being charged when the rate is 0% ?

Surely you will pay off the balance transfer fee before the end of the interest free period ?

gwapenut

Some treat the BT fee as a "purchase"

Jules2012

"The customer is always right"

That saying makes me teeth itch.

jonesMUFCforever

What you do is this ---- apply for new card to which a balance transfer is agreed---- work out how much balance transfer fee is going to be ---- then transfer the amount of the balance transfer fee at the same time that balance transfer is started

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thus no interest on balance transfer fee

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this has worked with both LTSB and MBNA.

scottishste_2

Always love a bit of bank bashing. It is simple little mechanisms like this to generate money that allows the rest of the people to enjoy free current accounts. I think it was the 80's you used to have to pay for a bank account but not anymore as someone else is paying through the nose to subsidize my debt free self. Thanks!

geordietracy

zerog and treadmill - Nat West are indeed doing something different. I too thought that the balance transfer fee was charged at 0% interest, like the amount I'd transferred. As already mentioned I had done a balance transfer to the same credit card 9 months ago and was not charged interest on the balance transfer fee that time.

This time, after I made the balance transfer, the fee amount was treated differently, as a charge - as gwapenut has pointed out. This then meant that the balance transfer fee attracted interest. Until you pay off the charge, the interest amount adds up, so will be more if you transfer at the beginning of the statement period and less if you do it a couple of days before you are due to get your statement.

Even if I had paid off the fee there and then on the day I did the balance transfer, I would have been charged at least 1 days interest on the fee. There is no way to avoid paying interest on the balance transfer fee with Nat West.

Indeed a fool and his/her money are soon parted - not disagreeing with that. Nor do I still live in the 80s and expect free banking (although my other current account with another bank pays me interest so one step better) which is why I have no qualms in shutting down my current account with Nat West - should have done it ages ago. The reason I didn't was because I still lived in the mistaken 80s belief that having had this credit card (and current account) for a long time, then Nat West would wish to keep me. This is the only about the second time I've ever needed to contact them with a query, but unfortunately their customer service response was such that I never wish to do business with them again.

Not only have they made money from me in the past they had the potential to make more from me in the future. However this fool will now be parted from their money with another institution instead.

'caveat emptor' - I do like a good quote (and ones to make your teeth itch too)!

stephane_2

geordietracy wrote: »

zerog and treadmill - Nat West are indeed doing something different. I too thought that the balance transfer fee was charged at 0% interest, like the amount I'd transferred. As already mentioned I had done a balance transfer to the same credit card 9 months ago and was not charged interest on the balance transfer fee that time.

This time, after I made the balance transfer, the fee amount was treated differently, as a charge - as gwapenut has pointed out. This then meant that the balance transfer fee attracted interest. Until you pay off the charge, the interest amount adds up, so will be more if you transfer at the beginning of the statement period and less if you do it a couple of days before you are due to get your statement.

Even if I had paid off the fee there and then on the day I did the balance transfer, I would have been charged at least 1 days interest on the fee. There is no way to avoid paying interest on the balance transfer fee with Nat West.

Indeed a fool and his/her money are soon parted - not disagreeing with that. Nor do I still live in the 80s and expect free banking (although my other current account with another bank pays me interest so one step better) which is why I have no qualms in shutting down my current account with Nat West - should have done it ages ago. The reason I didn't was because I still lived in the mistaken 80s belief that having had this credit card (and current account) for a long time, then Nat West would wish to keep me. This is the only about the second time I've ever needed to contact them with a query, but unfortunately their customer service response was such that I never wish to do business with them again.

Not only have they made money from me in the past they had the potential to make more from me in the future. However this fool will now be parted from their money with another institution instead.

'caveat emptor' - I do like a good quote (and ones to make your teeth itch too)!

Such a fuss for a few pennies....Get a life!

Cornucopia

stephane wrote: »

Such a fuss for a few pennies...

Isn't that what Money Saving is about?