New Post Office two-in-one card launched

The new credit card from the Post Office promises customers two products in one.

It can be used as a credit card or as a fixed rate loan – depending on the size of the purchase or how the customer is currently managing financially.

The Post Office two-in-one card comes with a zero per cent APR for the first six months on balance transfers and purchases. Thereafter the rate rises to 14.9 per cent.

However, the special feature of the card allows large purchases of between £500 and £2,000 to be transferred to a loan-like facility, which has a much lower rate of 6.8 per cent – allowing customers to repay their debt more easily.

Claire Oldstein, head of product development at the Post Office said: "We wanted to give our customers all the benefits of a competitive credit card and, through the discounted fixed rate facility, offer them the flexibility of paying for larger purchases, at a market leading rate."

The card has no annual fee and can be used worldwide and all goods purchased on the card are automatically covered by purchase protection insurance.