Frank O'Donnell

Low interest rates may be giving savers a poor return, but credit card borrowers are getting an equally bad deal.  Interest charges have seen a rise and are now only a few providers with interest rates in single digits.  Credit card interest rates have been at their highest level since September 2006 when Bank Base Rate stood at 4.75%.

To make a balance transfer within the first 60 days of taking out the card you will not be charged a fee and the transfer fee rises to 2.9% after 60 days. At 6.7% this is better value than the cheapest personal loan.

According to a customer satisfaction survey carried out by Uswitch, M&S and Tesco credit cards are the best for overall customer satisfaction at 89.4%. If you are a credit card user paying off the balance in full every month then customer service is very important. Bottom of the table came Halifax, Lloyds TSB and Natwest.

M&S customers also benefit from 0% interest on all shopping for 10 months from opening their account, 0% on balance transfers for six months and also stand to gain reward points whenever they use their card that can be spent in-store.

Tesco’s credit card offers customers 0% interest for 12 months on all purchases and, like M&S, 0% interest on balance transfers for six months as well as Clubcard points on all purchases.

Over a third of those surveyed do not know how the interest rate on their credit card compares with others on the market. If you are one of these cardholders then it is advisable that you shop around for a better deal. If you would like advice on your finances, please get in touch by emailing info@p3wealth.co.uk or call 0131 331 4191.