Example 2: Balance transfer compared to money transfer

This example compares a balance transfer to a money transfer.

Mike owes £2,000 on another credit card and he wants to save money on the interest he’s paying. He’s received two offers from Barclaycard and wants to know which is best.

Balance transfer offer

0% for 15 months + 3% fee

Money transfer offer

0% for 9 months + 2% fee

For both offers, the interest rate after the 0% period ends is 18.9%.

The balance transfer would pay off the other credit card directly, but he could also transfer cash into his bank account with the money transfer and pay off his other card using those funds.

So which feature would be cheaper for Mike? It depends on how long he takes to repay the total transfer amount.

The costs shown include the fee plus interest charges once the 0% period ends.

Time to repay

Cost of a Balance transfer

Cost of a Money transfer

9 months



12 months



15 months



18 months



24 months