I'm interested in knowing how the balance transfer fee is treated by Citibank.
As a card with balance transfer accumulates interest for all purchases immediately. Does it also applies to fees? Like balance transfer or annual card fees.
I could not find this information in the terms and condition of their card.
A balance fee is considered a purchase, and interest on it is to and so on.
It will more likely be the last thing paid off too.
No. If you transfer $1000, your "balance transfer" will be $1025.
I made a payment at the first statement for more than the annual fee and I was not charged any interest for the duration of the balance transfer.
When I applied for the card and got approved, my balance transfer was done immediately. However, BT fee and annual fee was charged when first statement was generated. I paid my minimum balance plus the annual and BT fee the same day. They charged me 49 cents as interest which when I called was reverse as a peace of cake. No issues. The idea is, pay the BT fee, annual fee and minimum payment right away when it is generated. No interest will then be charged.
Thanks for the replies.
I called citibank. They said that this fee just gets added to the balance transfer amount and no interest is charged!
Asked about the annual card fee, and he said it will be subject to interest.
I asked for this information in their terms and conditions but was told you can refer to this phone call in case the interest is charged. So still nothing in writing.
Found the following from the Citibank website:
Your total balance transfers may not exceed 80% of your credit limit. The 0% p.a. interest rate applies to balances transferred with this offer at point of application and the balance transfer fee, for a period of 26 months. The 26 month promotional period commences once the balance transfer is processed.
Which clearly states that 0% interest rate applies to both the balance transfer amount and the balance transfer fee.
Leaving this comment here for posterity.
Aren't those fees due immediately?