NatWest BT Fee Classed as a 'purchase' > Generating Interest

scoot65

I did a BT to NatWest approx three months ago. I'm now aware that NatWest class the BT fee as a 'purchase'. As far as I know, this BT fee will sit on my account until original balance (which was transferred) is paid off, and only then can the fee be paid off.

I'm three months into a 13 months BT with NatWest. My BT was £2,101.18 which included £41.20 BT fee.

I now see that my latest statement reads "If I make the minimum payment of £42.00 by the due date, my estimated interest payment next month is £20.42"

I'm actually paying off £100 each month, so that's well above the min payment. My question is, at the end of my 13 months will this BT fee of £41.20 have increased by attracting interest over the previous 10 months? (3 months free int.).

I can actually pay off the card in full as the money is sat in my Nationwide esavings account. Should I leave it there or what?

Thanks...

andyelcomb

Interesting.
We have a BT with NatWest too and I've looked back over the statements and yes, they did put the BT fee down as a purchase albeit purchases were also at 0.00% at that time.

We than paid a bit over the minimum too (which was more than the BT fee) and looking on the next statement it shows nil for the purchases - ergo they have used the first repayment to clear the BT fee and then applied the rest to the main balance.

So, we are trundling along happily paying nil interest just as planned.

What I don't get is that you were quoted as likely to owe £20.42 interest.
Does the statement show BT monthly interest rate as 0.0%? If not, you'd better get on the phone and ask them what's going on.

Andy

scoot65

Thanks for your reply andyelcomb,

Update;
I've spoken to NatWest and I've been told that as long as I make at least the minimum payments for the rest of the BT interest free period, I'll not be charged any interest on the BT or the BT transfer fee.

Apparently, the £20.24 interest amount is shown "in case I make further purchases", this is the amount I will pay if I did make more purchases

Anyway, it looks like it's definitely 0% for the remainder of BT period (approx 9 months for me).

Thanks again....

Milarky

You can avoid the fee of course by balance transferring after the 3 month period (is that correct?) with up to 10 months at 0%.

YorkshireBoy

Milarky wrote: »

You can avoid the fee of course by balance transferring after the 3 month period (is that correct?) with up to 10 months at 0%.

That's not the case Milarky, at least not with an RBS (same deal) application I was looking at the other day.

At the balance transfer section of the online application you're presented with the following (paraphrased) message...

"To take advantage of the 0% balance transfer offer, you must make your balance transfer within the first 3 months."

marvin

YorkshireBoy wrote: »

That's not the case Milarky, at least not with an RBS (same deal) application I was looking at the other day.

At the balance transfer section of the online application you're presented with the following (paraphrased) message...

"To take advantage of the 0% balance transfer offer, you must make your balance transfer within the first 3 months."

That's what I think he was saying