End on 0% interest rate

Herbalus

First time coming to the end of a 0% rate with John Lewis Partnership card. On my statement (January 15th) it says the 0% rate "will end on the next statement date after 27 February 2014". This will be March 15th.

Does this mean that interest will start occurring from March 15th (which means I need to pay on the day of statement production to avoid interest) or only if I do not pay off the March bill in full by the due date?

It seems odd that interest would start on the day of statement production. I opened the card on 27th so I originally thought that the 0% rate would end on the 27th February itself so I was planning to pay it off on the 21st.

thenudeone

You have already given the answer:

Herbalus wrote: »

the 0% rate "will end on the next statement date after 27 February 2014". This will be March 15th.

The 0% offer is completely different to the "no interest on purchases if you always pay the statement in full by the due date" which CCs usually offer as standard. Don't get them confused.

bengal-stripe

I have a "no-interest-on-purchases" deal with a Santander card. This will end with the June statement (around June 18th).

Makes perfect sense to me to end the deal with a statement date. Everything until the statement gets compiled is interest free; thereafter, in the forthcoming statement period, interest due will be applied.

Herbalus

thenudeone wrote: »

The 0% offer is completely different to the "no interest on purchases if you always pay the statement in full by the due date" which CCs usually offer as standard. Don't get them confused.

But if I don't pay the February statement in full because I'm on 0% promotional rate, then surely I wouldn't get the "no interest on purchase" after the promotional rate ends on March 15th. Therefore if I pay the full balance on March 17th that will be 2 days interest, right? I will no longer be on the 0% promotional rate and won't have the standard no interest because I didn't pay the previous statement in full. Correct?

rb10

Herbalus wrote: »

But if I don't pay the February statement in full because I'm on 0% promotional rate, then surely I wouldn't get the "no interest on purchase" after the promotional rate ends on March 15th. Therefore if I pay the full balance on March 17th that will be 2 days interest, right? I will no longer be on the 0% promotional rate and won't have the standard no interest because I didn't pay the previous statement in full. Correct?

That would be my understanding, i.e. you need to pay the balance off in full by 15 March, and then not use the card for at least a couple of months.

zerog

Herbalus wrote: »

It seems odd that interest would start on the day of statement production. I opened the card on 27th so I originally thought that the 0% rate would end on the 27th February itself so I was planning to pay it off on the 21st.

What seems odd is that you opened your account on a 27th but the statement date is the 15th.

For most of my cards the statement date is the same date that the account was opened, except for Cap One which allows me to change the date at will (meaning that I can get up to 70 days interest free) and Amex charge cards which appear to have statements broadly corresponding to calendar months.

Suppose my account was opened on the 20th, I would expect my statements to be 20th-20th (adjusted to the next business day if not). Payment would be due on the 14th or so and DDs might be taken any time after the 10th.

As balance transfer promo periods are usually for X months, I would expect the end of a BT period to fall on a 19th. I would then set the DD on the 14th to take the full balance, so that the latest statement (produced on the previous 20th) balance has been completely cleared.

When the next statement is produced on the 20th, the balance will be £0, and since the balance was paid off while being charged 0%, there is no interest. £0 will be due in 25 days (1). I am now free to use the card for purchases. Note that this purchase will only be statemented in 30 days, and be due in 55 or so days (3). As I paid off the entire previous statement by the previous due date (2), there are 2 months of fully cleared statements and no interest will be charged.