Balance Transfer Fees: How They Are Charged

A balance transfer fee is what a card provider charges to move a debt from one credit card to another. It is usually worked out as a percentage of the amount you move, and most providers charge between 2% and 3.5% of the transferred amount as a one-off fee¹. On a £5,000 balance, that is around £100 to £200³.

The fee is not billed separately. It is added to the balance on the card you are moving the debt to, so you owe the transferred amount plus the fee, and interest is charged on the whole lot once any 0% period ends⁴. That is why a fee can quietly reduce the saving a 0% deal appears to offer.

Fees vary widely. Some cards charge nothing to move a balance, others charge up to 5% for each transfer⁶. Longer 0% periods tend to carry higher fees, and the fee applies to each individual transfer rather than once per card⁴.

Balance transfer fees: usually 2% to 3.5% of the amount moved

The headline figure most guidance gives is a percentage of the debt you move. StepChange puts the typical fee at around 2% to 3% of the amount you are transferring, and says most credit card providers charge 2% to 3% as a one-off fee¹. Citizens Advice describes the same charge as a handling fee of around 2% of the balance⁸. Experian's range is slightly wider, at around 2% to 4% of the amount you are transferring³.

At the top of the market, Which? found that the longest 0% deals often come with a balance transfer fee typically around 3% to 3.5%, and that these deals are usually reserved for applicants with the strongest credit records¹⁰. Which? also reported that some cards charge up to 5% for each balance transfer, while others charge nothing at all⁶.

The averages move with the market. Which? reported an average fee of 2.65% for transferring a balance to a fee-charging card, compared with 2.42% a year earlier⁶. In February 2024 it reported that the average balance transfer fee for cards with the longest interest-free periods was 3.38%¹¹. The Financial Conduct Authority's 2014 credit card market study recorded the median balance transfer fee dropping from around 3% to 2.7% over the second half of 2014¹².

Individual cards sit across that range. Ulster Bank's Longer Balance Transfer card carries a 3.10% balance transfer fee to move debt from another card¹³. Tesco Bank's Low Fee Balance Transfer Credit Card charges 0.75%¹⁴. Nationwide charges 2.4% of the amount transferred, or £5, whichever is greater, apart from promotional offers¹⁶.

How the fee is worked out and added to your balance

The fee is a percentage of the total balance you are transferring, and it is added to the balance on the new card rather than taken as a separate payment⁴. Bank of Scotland states that balance transfer fees are usually a percentage of the transfer amount and apply to each individual transfer⁴. TSB says most cards will charge a fee for a balance transfer and this fee will be added onto your balance⁵.

That matters for two reasons. First, the fee itself can attract interest once a promotional period ends, because it becomes part of what you owe. Second, the fee counts towards your credit limit, so a large transfer plus its fee can take you closer to the limit than the transfer alone would.

Worked examples from providers show the arithmetic. Lloyds gives the example of transferring £1,000 at a 3% fee, which means a £30 transfer fee¹⁷. Experian says transferring a balance of £1,000 will cost between £30 and £50¹⁷. StepChange's example is a £2,000 balance at a 3% fee, giving a £60 transfer fee¹.

Some cards set a minimum charge as well as a percentage. Nationwide charges 2.4% of the amount transferred or £5, whichever is greater, on transfers made after 90 days, and 2.99% or £5, whichever is greater, within 90 days of opening the account¹⁸. HSBC says it may charge a balance transfer fee with a minimum of £5 on each balance transferred from another card¹⁹.

Longer 0% periods tend to carry higher fees

The length of the interest-free period and the size of the fee tend to move together. Which? found that the longest 0% balance transfer deals currently on the market run to 38 months, and that these longest deals often come with a fee typically around 3% to 3.5%⁹. Barclays describes the trade-off directly: there is a transfer fee for lengthy 0% deals, often between 2% and 4% on the balance transferred on each card²⁰.

Shorter deals are cheaper or free. The government's Northern Ireland guidance notes that the interest-free period only lasts for a certain amount of time, usually six to nine months²¹. StepChange notes that many credit card companies offer 0% transfer fees as a way to encourage applications²⁰.

The pattern is not universal, and the fee can also depend on when you transfer rather than how long the deal runs. Santander's Everyday Long Term Balance Transfer Credit Card applies a 3% balance transfer fee to any new balance transfers made after the 0% period ends²². Nationwide charges more within the first 90 days than after them¹⁸.

Fee-free and low-fee balance transfers

Fee-free transfers exist, but they are the exception rather than the rule. Barclays says its no-fee offer will not charge a transfer fee on each card debt you consolidate²⁰. StepChange notes that many credit card companies offer 0% transfer fees as a way to encourage applications²⁰. Which? confirms that some cards do not charge a balance transfer fee, while others charge up to 5% for each transfer⁶.

Low-fee cards sit between the two. Tesco Bank's Low Fee Balance Transfer Credit Card charges a 0.75% balance transfer fee, with 0% interest on balance transfers guaranteed for the first 15 months¹⁴. On a £2,000 transfer that is a £15 fee, against £60 at 3%.

A fee-free or low-fee transfer is not automatically the cheaper route. A card with no fee may carry a shorter 0% period or a higher rate once the offer ends, so the fee is only one part of the cost. StepChange advises checking for any hidden fees, including on 0% balance transfers, and checking that you will not pay more than you need to once the offer expires²⁴.

How much is a balance transfer fee on £5,000?

On a £5,000 transfer, the fee depends entirely on the percentage the card charges. Experian says moving a balance of £5,000 could cost around £100 to £200³. Experian's separate worked example uses a 2.5% fee, which would be £125 on £5,000²³.

At the ends of the range the numbers are very different. A card charging 2% would charge £100 on £5,000, and one charging 4% would charge £200³. A card charging 5% would charge £250⁶. At the 3% that StepChange uses in its example, the fee on £5,000 would be £150¹.

The fee is charged on each transfer, so splitting a £5,000 debt across two transfers rather than one can mean two fees rather than one⁴. Where a card sets a minimum charge, that minimum applies per transfer as well: HSBC's minimum is £5 per balance transferred from another card¹⁹.

Is there a minimum balance transfer fee?

Some cards set a floor below which the percentage does not apply. Nationwide charges 2.4% of the amount transferred or £5, whichever is greater, on transfers after 90 days, and 2.99% or £5, whichever is greater, within 90 days¹⁸. HSBC says it may charge a balance transfer fee with a minimum of £5 on each balance transferred from another card¹⁹.

There is also a minimum on the amount you can move. Bank of Scotland says the minimum balance you can transfer is usually £100⁴. Below that, a transfer may not be possible at all.

A minimum charge matters most on small transfers. On a £100 transfer, a £5 minimum is 5% of the amount moved, well above the headline percentage. On a £2,000 transfer the same £5 floor is irrelevant, because the percentage produces a larger figure.

Is the balance transfer fee charged again if I make a second transfer?

Yes. Fees apply to each individual transfer rather than once per card. Bank of Scotland states that balance transfer fees are usually a percentage of the transfer amount and apply to each individual transfer⁴. Experian says there is usually a fee for each balance transfer⁷.

That means consolidating three separate card balances onto one 0% card can mean three separate fees, each calculated on the amount moved. The total fee is the sum of the individual fees, and each one is added to the balance on the new card.

The fee that applies can also change over the life of the card. Santander applies a 3% balance transfer fee to any new balance transfers made after the 0% period ends²². StepChange warns that if you move more debt onto the card after the offer has finished, the transfer fee could be as high as 18%²⁰.

How the fee affects your minimum repayments

The fee increases what you owe, and that in turn affects what you have to pay each month. RBS's balance transfer comparison calculator sets its minimum repayment assumption at 3% of the balance transfer amount, to give an indication of a minimum monthly repayment²⁵. Santander says you will need to pay at least the minimum amount each month so you do not lose your 0% deal²⁶.

Some providers require more than the standard minimum when a fee has been charged. NatWest's Minimum Payment Plus requires at least double any fees and interest, so a £150 balance transfer fee means a Minimum Payment Plus of at least £300 for that month²⁷.

The practical effect is that a fee can slow down how quickly the debt falls. StepChange's warning is blunt: fees may mean you save less than you expect². A 0% deal removes interest for a set period, but the fee is still a real cost added to the balance you have to clear before the offer ends.

Where to get free help

If the fee plus the balance is more than you can clear, free and impartial help is available. StepChange, National Debtline and Business Debtline all give free debt advice, and National Debtline sets out how debt consolidation works in England and Wales²⁸. Macmillan Cancer Support provides money guidance for people living with cancer³⁰.

The Financial Ombudsman Service can look at a complaint about a card provider if you are unhappy with how a fee was applied, and the provider's own complaints process comes first. If you are in Scotland or Northern Ireland, the same card rules apply, but the debt advice routes and court processes differ, and it is worth checking the guidance for your nation before deciding what to do²¹.