Can I transfer money from a credit card to a bank account?

Find out your options for transferring funds from a credit card to a bank account, and the best way to do so.

Most credit cards don’t offer the facility to transfer funds to your bank account, but specialist cards designed for exactly this purpose do exist, known as “money transfer credit cards”. Money transfer cards will typically come with an introductory 0% rate on money transfers for a fixed period, which could even be upwards of 24 months. You’ll usually need to make the transfer(s) within a specified timeframe from account opening.

Alternatively, you could of course withdraw cash from your credit card. This is classed as a “cash advance” and typically comes with a fee and a higher rate of interest – that will begin to accumulate immediately (your card’s interest-free days usually won’t apply to cash advances). As a general rule of thumb, you shouldn’t use credit cards for withdrawing cash, although money transfer credit cards offer a way around this.

If you’re looking at transferring funds from a credit card, perhaps in order to pay off your overdraft, pay an individual or to access cash, a money transfer card could be a smart option. Here’s how they work, how to compare them and what to watch out for.

How to transfer funds from a credit card to a bank account with a money transfer card

Before proceeding, be sure to understand exactly what fees will be applied as well as the money transfer terms and conditions.

Typically the process will follow these steps:

Online

  1. Log into your Internet banking or card app.
  2. Look for a “money transfer” or “transfer money to my bank account” option.
  3. Enter the bank account and sort code details of where you want the money to go as well as the amount you wish to transfer.
  4. Once approved and processed, the money could be in your account within minutes.

Over the phone

The amount you transfer to your bank account, plus any fees, will then be added to your card’s outstanding balance, which you’ll then pay back through monthly repayments.

How much can I transfer?

When you apply for a credit card, if your application is successful you’ll be offered a personalised credit limit, which is based on factors like your income, existing debt and credit record. However, you might not be able to max-out your card through money transfers, because card issuers may stipulate a transfer limit – typically 90-95% of your credit limit.

What about the fees?

Although you should be able to avoid paying interest for a set period by using a money transfer card, you are likely to be charged a fee when you ask for a money transfer. This is usually between 2% and 4% of the amount you are transferring.

Don’t forget that if you miss one of your minimum monthly repayments, you’ll likely lose your promotional rate.

Compare money transfer credit cards

Table: sorted by representative APR, promoted deals first
Name Product Money transfers Money transfer fee Purchases Annual/monthly fees Representative APR Link Incentive Representative example
MBNA Long 0% Money Transfer Credit Card
0% for 18 months reverting to 22.94%
2.99% for 18 months reverting to 5%
22.94%
£0
22.9%
Representative example: When you spend £1,200 at a purchase rate of 22.94% (variable) p.a., your representative rate is 22.9% APR (variable).
Virgin Money All Round Credit Card Mastercard
0% for 12 months reverting to 29.9%
4% for 12 months reverting to 5%
0% for 3 months reverting to 29.9%
£0
29.9%
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
Virgin Money 24 Month Balance Transfer Credit Card Mastercard
0% for 12 months reverting to 24.9%
4% for 12 months reverting to 5%
0% for 3 months reverting to 22.9%
£0
22.9%
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Virgin Money 20 Month Balance Transfer Credit Card Mastercard
0% for 12 months reverting to 24.9%
4% for 12 months reverting to 5%
0% for 3 months reverting to 22.9%
£0
22.9%
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Virgin Money 16 Month Balance Transfer Low Fee Credit Card Mastercard
0% for 12 months reverting to 24.9%
4% for 12 months reverting to 5%
0% for 3 months reverting to 22.9%
£0
22.9%
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Virgin Money 16 Month Balance Transfer Credit Card Mastercard
0% for 12 months reverting to 29.9%
4% for 12 months reverting to 5%
0% for 3 months reverting to 29.9%
£0
29.9%
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
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What to think about before transferring funds from a credit card

Make sure you consider these factors and potential costs before you go ahead with a money transfer to a bank account.

  • Transferring between accounts. If you’re not using a dedicated card, your transfer might be subject to some fairly punishing rates and fees, since many card issuers treat money transfers as cash advances.
  • High interest after the promotional period ends. You’ll want to pay off the balance within any promotional period to avoid paying interest at a significantly higher rate. So make sure you can afford the monthly repayments.
  • High initial fee. The fee you pay is normally a percentage of the amount being transferred, which can work out quite painful for larger money transfers.
  • Temptation to spend. You may be more tempted to spend money that is in your bank account.
  • Do your sums. It would be wise to calculate what you will pay in both fees and interest over the promotional period and compare this with other forms of borrowing. For instance, you might be able to get a personal loan that works out cheaper over the period, particularly if the initial fee is high.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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2 Responses

  1. Default Gravatar
    JulieApril 27, 2020

    I am about to receive a refund to my m&s MasterCard from jet2 how will I be able access funds preferably to transfer to my lloyds account

    • Avatarfinder Customer Care
      TomApril 27, 2020Staff

      Hi Julie,

      Thanks for getting in touch. Most credit card providers will allow you to transfer a credit card refund to your bank account either via BACS transfer or cheque. You will need to contact Marks & Spencer directly to request they transfer the refunded credit to your account. I hope this helps, but please let me know if you have any other questions.

      Regards,

      Tom

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