Beginning tomorrow, Citibank will be increasing the balance transfer fee on its flagship Citi Platinum Card as well as the Citi Diamond Preferred credit card. In June, the balance transfer fee for both of these cards was a low 3%. In early July, Citi increased the balance transfer fee on the Citi Platinum Card to 4%, in line with most other banks. The balance transfer fee for the Citi Diamond Preferred Card remained at a low 3%.
Both the Citi Platinum Card and Citi Diamond Preferred Card will now carry 5% balance transfer fees. On the Citi Diamond Preferred Card, the 5% fee is accompanied by a 0% APR on balance transfers lasting for 12 months. However, on the Citi Platinum Card, the 0% balance transfer deal lasts 18 months, making it the longest 0% offer on the market.
Read the Complete July Balance Transfer Fee Report
With a 5% balance transfer fee, consumers will pay $50 for every $1,000 transferred. On a $5,000 balance transfer, this amounts to $250 in fees. Despite the relatively large fee, the Citi Platinum Card still offers new applicants substantial value. For example, a person who transfers $5,000 from a card with a 15% interest rate can save close to $1,000 over the course of the 18 month 0% period.
Ultimately, it looks like balance transfer fees of 4-5% will remain the norm, especially for the longest balance transfer offers. But even with these fees, consumers stand to save considerable amounts of money by taking advantage of current balance transfer offers, which are as generous as they have been in over two years.
For more information on current 0% balance transfer offers, please see the main section of Smart Balance Transfers.
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