Borrowers can now avoid interest on their purchases for nearly two years after Santander revamped its 123 credit card.
The Santander 123 credit card now offers 0% on purchases for 23 months, the longest 0% period on spending ever. What's more, the card also boasts a 23-month 0% period on balance transfers, with no balance transfer fee to worry about either.
The existing cashback offers are still in place on this card as well. So you can get 1% cashback at all major supermarkets, 2% at all major department stores and 3% cashback on petrol, National Rail and Transport for London spending.
The annual fee for the 123 card is £24, and it comes with a representative APR of 16.5%
The longest 0% periods
There are a lot of selling points to the new-look 123 card, so let's start with looking at how it compares to other cards offering sizeable 0% periods on purchases.
|
Credit card and provider |
0% on purchases |
Representative APR |
|
23 months |
16.5% |
|
|
Halifax Purchase Credit Card |
20 months |
18.9% |
|
19 months |
18.9% |
|
|
19 months |
18.9% |
|
|
19 months |
18.9% |
|
|
Lloyds Bank Platinum Purchase Card |
19 months |
18.9% |
|
Bank of Scotland Platinum |
19 months |
18.9% |
|
Sainsbury’s 18 Month Purchase and Balance Transfer Credit Card |
18 months |
18.9% |
Compare more interest-free purchase credit cards
So Santander is clear at the top, but there are plenty of cards offering at least a year and a half before you have to worry about being charged interest on your spending. These cards are perfect if you have a big purchase coming up and need to pay off the balance in stages, without worrying about interest being charged on your outstanding balance.
Cheap balance transfers
The new 123 card will also catch the eye of borrowers looking to clear existing card debt. Not only do they get to avoid interest charges for nearly two years, but there's no transfer fee to worry about either.
Here's how it shapes up against the best of the rest when it comes to low-fee balance transfer cards.
|
Credit card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
23 months |
None |
£0 |
16.5% |
|
|
15 months |
None |
£0 |
18.9% |
|
|
12 months |
None |
£0 |
18.9% |
|
|
15 months |
0.55% |
£11 |
15.9% |
|
|
15 months |
0.65% |
£13 |
17.9% |
|
|
17 months |
0.9% |
£18 |
18.9% |
|
|
24 months |
1.25% |
£25 |
18.9% |
*Nationwide current account customers only
[SPOTLIGHT]So again, the Santander 123 card is well ahead of the rest when it comes to low-fee balance transfer cards. Don't forget that annual fee though - even though you won't be charged a transfer fee for moving your debt over, if you keep the card for the full 0% term you'll be shelling out £48.
I need more time
So the Santander 123 card will clearly appeal to those who want a lengthy 0% deal on purchases and those who want to transfer debt cheaply and then pay it off in stages. It will also appeal to borrowers who want to keep their purchases and balance transfers together on a single card.
But if you have more significant debt, and need longer in order to clear your balance, you'll be better off going for a card with a longer 0% balance transfer period. And the good news is that there are plenty of them, offering up to 34 months before you start paying interest.
For a comprehensive round-up, check out The best 0% balance transfer credit cards.
And if it's cashback that you want from your card, you can see how the Santander card compares to its rivals in The best cashback credit cards.