Halifax, part of Lloyds Banking Group, has rolled out a new low rate all-purpose credit card that charges 6.45% interest on both purchases and balance transfers.
The new card features no annual charge and provides fee-free balance transfers for the first 90 days.
The card, which is available online, will charge a 3% fee on every balance transfer made after the first 90 days.
Based on a typical spend of £2,000 on a card charging 18.9%, the low interest rate card would mean that customers are potentially better off by £571 over a period of 36 months.
With this card, at least 51% of customers will receive a representative rate of 6.4% annual percentage Rate (APR), while others will get a rate of 10.9% or 14.9%.
Jon Roberts of Halifax Credit Cards said: "By launching this simple, low rate product Halifax is demonstrating its continued commitment to providing extra value and choice to customers.
"The Halifax Low Rate Card is designed to help customers keep things simple, with the same low rate across purchases and balance transfers, enabling customers to keep track of their spending more easily."