If you've accumulated credit card debt, getting a credit card with a promotional balance transfer offer is an excellent way to reduce some of the interest. The amount you'll save will vary depending on several factors, but it could be as high as $600 in interest savings.
Of course, some offers and interest rates are better than others, so you'll want to check the list of the top balance transfer cards before making any decisions.
Below, you'll find details of the best balance transfer offers, scenarios to show how much you can save, and more.
Key Takeaways
- A balance transfer offer can save you money on credit card interest.
- The MBNA True Line Mastercard has the best balance transfer offer in Canada.
- Other top balance transfer offers include the CIBC Select Visa and Scotiabank Value Visa.
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Summary of the best balance transfer credit cards
First, here's a summary of the best balance transfer offers in Canada, with links to get the full details on what they offer.
Each of these cards also doubles as a regular low interest card. So once the balance transfer promotion is over you'll still be getting lower interest rates.
| Credit Card | Balance Transfer Promotion | Balance Transfer Fee | Regular Interest Rates | Annual Fee |
|---|---|---|---|---|
| MBNA True Line Mastercard | 0% for 12 months | 3% | * Purchase: 12.99% * Balance Transfer: 17.99% * Cash Advance: 24.99% | $0 |
| Scotiabank Value Visa Card | 0.99% for 9 months | 1% | * Purchase: 13.99% * Balance Transfer: 13.99% * Cash Advance: 13.99% | $29 |
| CIBC Select Visa Card | 0% for 10 months | 1% | * Purchase: 13.99% * Balance Transfer: 13.99% * Cash Advance: 13.99% | $29 |
| BMO Preferred Rate Mastercard | 0.99% for 9 months | 2% | * Purchase: 13.99% * Balance Transfer: 15.99% * Cash Advance: 15.99% | $29 |
Rules of transferring balances between credit cards
There are rules to follow when it comes to transferring balances between credit cards. We won't go over them here, we have a whole page dedicated to balance transfer rules you can view here.
But there is one key rule we'll point out. You can't transfer balances from cards from the same bank. And that includes subsidiaries as well. So say your debt is on a card from TD. If this is the case, you won't be able to transfer it to an MBNA card.
What you can save with these balance transfer offers
Let's look at 4 key details showing how much you'll save (and what it costs) with each of these cards.
We'll base this on transferring $5,000 to your new card, and that the current interest rate on your credit card is 20%.
If you paid $300 per month on your credit card, you would have that debt paid off in 20 months, and you will have paid $907 in interest.
1. Promotional balance transfer term
First, we'll need to start with the length of each promotion – the amount of time you'll enjoy our low interest rate.
Here is the balance transfer term for each card.
2. Promotional balance transfer interest rate
Now what about those interest rates? Here's what each card offers.
Over the length of each promotion, here's what you'll save on credit card interest with each one, as well as what you'll have left to pay down.
| Credit Card | Interest Saved | Balance Remaining |
|---|---|---|
| MBNA True Line Mastercard | $748 | $1,400 |
| Scotiabank Value Visa Card | $663 | $2,000 |
| CIBC Select Visa Card | $663 | $2,030 |
| BMO Preferred Rate Mastercard | $586 | $2,328 |
3. Balance transfer fee
There's almost always a fee to pay for these transfers (unless you live in Quebec, where there are no balance transfer fees due to different laws regarding regulation).
The rate is expressed as a percentage of the amount being transferred. Here's what you'll pay for each card.
| Credit Card | Transfer Fee | Fee Paid |
|---|---|---|
| MBNA True Line Mastercard | 3% | $150 |
| Scotiabank Value Visa Card | 1% | $50 |
| CIBC Select Visa Card | 1% | $50 |
| BMO Preferred Rate Mastercard | 2% | $100 |
4. Annual fee
Some of these cards have an annual fee you'll have to pay. Here's the annual fee for each of them.
With that said, for the cards that do have annual fees, they are also currently waived for the first year, so for these promotional offers, you won't pay anything in terms of annual fees for them. You'll only pay it if you keep the card for more than 1 year.
The winner
So let's add up all our numbers and see what we get.
| Credit Card | Interest Saved | Balance Transfer Fee | Annual Fee | Total Savings | Balance Remaining |
|---|---|---|---|---|---|
| MBNA True Line Mastercard | $748 | $150 | $0 | $598 | $1,400 |
| Scotiabank Value Visa Card | $663 | $50 | $0 | $613 | $2,000 |
| CIBC Select Visa Card | $663 | $50 | $0 | $613 | $2,000 |
| BMO Preferred Rate Mastercard | $586 | $100 | $0 | $486 | $2,328 |
Thanks to the lower transfer fee, the Scotiabank Value Visa Card and CIBC Select Visa Card actually save you more thanks to their lower transfer fees that save an extra $100.
But with that said, the MBNA True Line Mastercard gets your remaining balance much lower as you're getting an extra 2 months of no interest payments. Since you're much further ahead than you’d be with the other cards listed here, it’s the clear winner.
Now, the Scotiabank Value Visa Card and CIBC Select Visa Card will definitely be the better cards if you can pay all your balance within the promotional period.
In our fictitious example, if you paid $500 per month, your debt would be wiped clean after 10 months (on your regular card, you would have paid your debt in 12 months). Here's what that would look like:
| Credit Card | Interest Saved | Balance Transfer Fee | Annual Fee | Total Savings | Balance Remaining |
|---|---|---|---|---|---|
| MBNA True Line Mastercard | $515 | $150 | $0 | $365 | $0 |
| Scotiabank Value Visa Card | $515 | $50 | $0 | $465 | $0 |
| CIBC Select Visa Card | $515 | $50 | $0 | $465 | $0 |
| BMO Preferred Rate Mastercard | $492 | $100 | $0 | $468 | $522 |
In this case, the Scotiabank Value Visa Card and the CIBC Select Visa Card are your better options, as you saved $100 more dollars with them with their lower transfer fees.
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Which balance transfer credit card offer is best?
Overall, the MBNA True Line Mastercard is the better balance transfer offer, as it runs longer.
But do your math and homework. As we've shown, depending on your situation, there might be a better offer for you.
What are your thoughts on these balance transfer offers? Let us know in the comments below.
FAQ
What is the best balance transfer credit card?
The best balance transfer credit card in Canada is the MBNA True Line Mastercard. It comes with a balance transfer offer of 0% for 12 months, with a balance transfer fee of 3%, all for no annual fee.
How do balance transfers work on credit cards?
Your current credit card initiates a balance transfer from another card. You can transfer balances to other credit cards that can only be done on cards from different banks. There is also a fee involved, expressed as a percentage of the amount transferred.
What credit cards have the best balance transfer offers?
Some of the best balance transfer offers on a credit card in Canada are:
- MBNA True Line Mastercard – 0% for 12 months
- Scotiabank Value Visa Card – 0.99% for 9 months
- CIBC Select Visa Card – 0% for 10 months
- BMO Preferred Rate Mastercard – 0.99% for 9 months
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