MBNA Balance Transfer card - lower standard interest rate

MBNA has announced that it will offer a lower standard balance transfer interest rate for new customers applying for one of its most popular credit cards.

The MBNA Balance Transfer credit card offers 0% for 16-months on balance transfers made within the first 60 days of account opening with a 2.9% handling fee.

Customers now signing up and qualifying for the product will receive a 16.8% (typical) variable rate on balance transfer amounts, down from an 18.9% (typical) variable rate previously, after the 16-month promotional period ends.

Will Curley, product executive for Bank of America Europe Card Services, which operates under the MBNA brand in the UK, said: "We are committed to providing added value through our products. By making this change we have simply improved the terms for customers.

"Our Balance Transfer credit card is already one of the most competitive in the market and now we are making it even more so."

The card also offers 0% on card purchases for the first three months and a typical rate of 16.8% APR variable.

Earlier this year, MBNA became one of only a handful of UK credit card lenders who allocate customers' repayments to their highest interest-bearing balances first.