The flat rate covers all purchases, balance transfers and cash withdrawals.

Abbey is also promising fewer charges with no annual fee, no cash advance fee for using cash machines, and fee-free cheques.

Abbey’s Customer Director, Angus Porter, says: “This new flat rate card could not be clearer – what you see is what you get.”

He continues: “It has been designed to be simple and transparent, helping people stay in control of their finances.”

On top of this the card also gives customers a 59-day interest free period on all items bought with the card.

The bank says that this new card is an example of Abbey’s continuing commitment to fairness and is added to the company’s existing ‘transfer’ and ‘shopping’ credit cards. These both have a zero per cent rate for the first six months.