My bank used Internet Marketing tactics on me!
In this post I get to pull together two of my favourite themes… sneaky banks and Internet marketing. 
If you’ve seen the ever-increasing hype surrounding new product launches in the Internet marketing world, you’d be forgiven for thinking that the “act now, or else” marketing tactic was only being used by the “guru” Internet marketers.
You’d be wrong.
I got an email this morning from my bank asking if I’d like to make a balance transfer at a special, *Christmas* offer where they waive the balance transfer fee (normally 3%)… and, get this, the offer expires at Midnight December 7th. That’s right, it’s a ONE DAY offer.
Here’s the email copy…
***
Do you want to be full of the festive spirit and enjoy the festive season without the financial strains it may bring? For a limited time only, you can now transfer a balance* WITHOUT a fee being charged!
Complete a balance transfer before midnight on 7th December 2006** using our online banking service and the balance transfer handling fees will be waived.
***
Wow. Is that an “Internet marketing” tactic you recognise? Act now, or else (the price goes up, the offer sells out, we withdraw the offer, the sky falls in).
And the “catch” is (as far as I can tell) it ISN’T a “zero percent” balance transfer… so presumably they’ll waive the transfer fee, but charge you interest from the day the transfer takes place at your current card rate.
Did you assume it was a “zero percent” balance transfer? Silly you!
Depending on the amount your transfer, how long you take to pay it off, and the rate of interest you’re paying at the moment, you may be better off ignoring this one-day offer and actually going for the “standard” zero percent for 12 months (with a 2% handling fee).
I actually got a zero percent deal for nine months without a transfer fee from the same bank about a year ago. I put their money on my mortgage and, before the deal expired, paid off the card thereby saving a small fortune in mortgage interest.
So, thanks for the 24-hour “Christmas” offer, but no thanks.
December 7th, 2006 at 7:49 pm
Yeah it’s funny how banks work.And remember,there’s always a “catch” in every “great deal” they offer
December 11th, 2006 at 6:55 pm
In my country, credit card is becoming popular in all kinds of banks these years. But even the bank clerks don’t know how the credit cards work sometimes. There were many peole afraid of applying for a credit card. The banks also begin to charge for different kinds of fees, such as annual fee, rogatory fee, they even charge when there are little money in your accounts. It’s a terrible thing to have many cards nowadays.
March 15th, 2008 at 6:59 pm
There is no doubt that the banks are sneakier than most at getting business. The truth is, if they can afford a deal, you can normally get it.
Very often I have transfered credit card balances to be given a certain interest rate, when i challenge it and say the competition can do a better deal, they come back with an even better deal to get the business.
I never make quick decisions when it comes to finance.
June 6th, 2008 at 9:47 am
It’s all true. Banking marketers are very sneaky, and they everyday are thinking about new “best offer” for us - customers.