Balance Transfer - when they charge you a fee, will they charge interest on it?

deliciosa

I have just been accepted for a MBNA 0% card. I could B/T all my existing debts on it for 3% fee. Thats all fine but will they charge then interest ON the fee? Or is it at 0% just like the balance?

Please help, I've never done this before.

Many thanks

NickX

No, MBNA collect the BT fee in the first payment.

The first miniumum payment is the lesser of :

(a) BT Fee + £25

(b) 2% of the Balance

Future minimum payments are £25 only.

deliciosa

NickX wrote: »

No, MBNA collect the BT fee in the first payment.

The first miniumum payment is the lesser of :

(a) BT Fee + £25

(b) 2% of the Balance

Future minimum payments are £25 only.

Is this sure? Thank you, that would be fantastic!!!! Do they add the fee to my balance then or not? So it is true that I really don''t pay any interest for 12 months?

:j :j

My balance will be £3500. So 2% of that is 70. ut they charge me a BT fee of 2.9% which would be about a hundred pounds. So what do I pay to them? How do I pay off the fee?

CannyJock

deliciosa wrote: »

Is this sure? Thank you, that would be fantastic!!!! Do they add the fee to my balance then or not? So it is true that I really don''t pay any interest for 12 months?

:j :j

My balance will be £3500. So 2% of that is 70. ut they charge me a BT fee of 2.9% which would be about a hundred pounds. So what do I pay to them? How do I pay off the fee?

Balance is £ 3,500. Fee will be 2.9% = £ 101.50.
You will tranfer £ 3,500 to your other cards, presumably to leave them with £0 showing. Your MBNA card will then have a balance of £ 3,601.50.

(a) = £ 101.50 + £25.00 = £ 126.50
(b) = 2% of £ 3601.50 = £ 72.03

I'm pretty sure your first payment will be £ 126.50 and not the £ 72.03 figure (based on my experience with the Virgin card).

Balance after first payment = £ 3,601.50 - £ 126.50 = £ 3,475.

Further minimum payments = £ 25 per month.

deliciosa

CannyJock wrote: »

Balance is £ 3,500. Fee will be 2.9% = £ 101.50.
You will tranfer £ 3,500 to your other cards, presumably to leave them with £0 showing. Your MBNA card will then have a balance of £ 3,601.50.

(a) = £ 101.50 + £25.00 = £ 126.50
(b) = 2% of £ 3601.50 = £ 72.03

I'm pretty sure your first payment will be £ 126.50 and not the £ 72.03 figure (based on my experience with the Virgin card).

Balance after first payment = £ 3,601.50 - £ 126.50 = £ 3,475.

Further minimum payments = £ 25 per month.

Thank you, this is all fine, if this is the case I am a very happy person

YorkshireBoy

deliciosa wrote: »

...if this is the case I am a very happy person

It isn't, in respect of the first minimum payment, but you'll still be happy.

Assuming it's the current Platinum product, the actual figures are:

3% of the balance

or

the 2.9% BT fee + £5

whichever is the least, providing it will always be at least £25 (unless your balance is less than £25, in which case it will be the balance).

Assuming a £3,500 BT, the first minimum payment will be...

(£3,500 + (£3,500 x 2.9%)) x 3% = £108.05

or

(£3,500 x 2.9%) + £5 = £106.50

Second, and subsequent, minimum payments are, as others have said, £25.

deliciosa

thank you!! well as long as they dont charge interest on the fee = i dont pay interest at all, that's finefor me... what happens if i happen to do BT again in a month's time.. or even stooze the rest onto my account (thats a 2.9% charge too - how will that be paid?

NickX

YorkshireBoy wrote: »

3% of the balance

Thanks YorkshireBoy, I thought it was 2% but clearly was mistaken.

Still MBNA offer excellent repayment terms for the stoozer.

YorkshireBoy

deliciosa wrote: »

...what happens if i happen to do BT again in a month's time.. or even stooze the rest onto my account (thats a 2.9% charge too - how will that be paid?

The minimum payment will always be calculated as in post #6 above, ie...

3% of the balance

or

the 2.9% BT fee + £5

whichever is the least, providing it will always be at least £25 (unless your balance is less than £25, in which case it will be the balance).

...unless you have incurred interest/charges or opted for PPI.

deliciosa

thanks no ppi, i am not crazy.