Post Office launches credit card

The Post Office has entered the credit card field by offering a "two for one" deal, allowing flexibility when paying for large purchases.

As well as being a normal credit card, the Post Office version enables customers to switch money from the credit card account to a loan-like resource, which has a discounted interest rate of 6.8 per cent.

They can transfer up to two purchases between £500 and £2,000 at any one time as long as it is within a month of making the purchases.

David Mills, the chief executive of Post Office Ltd said: "By launching this unique 'two in one' credit card we're setting a challenge to all other providers.

"Offering customers a flexible way of paying for larger purchases at a market-leading, discounted rate is something we believe provides real financial benefits and will shake up the market, challenging other lenders who impose higher rates."

The credit card will have a standard interest rate of between 12.9 per cent and 14.9 per cent and its special joining offer is zero per cent interest on balance transfers and purchases for the first six months.