: How to handle fee for a balance transfer? To save some money on interest, last week I transferred a balance of ,500 from my student loan account to my credit card for 0% APR for 18 months and a 2% transfer fee. The transfer

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Typically your statement will break down each of the balances that carry a different rate, so you'll see them lumped into the 0% line, or two separates lines with different rates for each. If you don't see it on the statement, a quick call to your bank should clarify it for you.

If I had to guess, I would lean towards the fee likely being at 0% also, but if it isn't, typically you would pay the minimum + 0 on your next statement. (Because only amounts over the minimum go towards principal of the highest rates first, at least this is true in the US for personal accounts.) Of course this is something your bank should be able to clarify as well.

Balance Transfer Tip: I always recommend setting up automatic payments when you take advantage of a balance transfer offer. The reason is, oftentimes buried deeply in the terms and conditions, is an evil phrase which says that if you miss a payment, they have the right to revoke the promotional rate and start charging you a higher rate. That would be bad enough if it happened, but to make things worse I believe the fee you paid for the transfer is not returned to you. So, set up an auto payment each month for at least the minimum payment. And if you can afford it, divide the total transferred by the number of months and pay that amount each month. (Assuming you don't pay interest on the fee: ,500 * 1.02 / 18 = 1.67/per month.) That way you'll have it paid off just in time to not have any higher interest when the promotional rate expires. If you don't know if you can afford the higher amount each month, set it to the max you know for sure you can afford, and make additional payments whenever you can.