The high street bank has become one of only a select few credit card providers to offer a zero per cent interest rate on balance transfers for a period of 12 months or more.

Coupled with the three month grace period on purchases, the HSBC card is one of the market leading products for its headline rates. The typical APR following the end of the introductory offers is 15.9 per cent.

Spencer May, HSBC’s head of consumer cards, said: “At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognise that people are becoming more careful with their credit card borrowing.”

Mr May noted that credit card borrowing in the UK has fallen in four of the last six months, which pointed to the fact that shoppers were getting more savvy about spending on credit.

“It is for this reason that we have decided to extend our latest interest free offer on balance transfers,” he continued. “As a result cardholders will see their existing credit card debt reduce more rapidly and save themselves hundreds of pounds in interest.”

A word of caution on the deal was sounded by The Motley Fool financial advisers, who noted that the although the card’s balance transfer fee was not high, it did not have a cap so in some cases could end up being expensive to switch debts to the card.

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