In order to further strengthen its foothold in the credit card
market, MBNA Europe Bank Limited - a fully owned subsidiary of
Bank of America Corporation
) - announced the launch of a new credit card. It is named
"Everyday," and offers cardholders an all-in-one solution for their
daily spending and debt consolidation requirements. Management
believes that the card would set MBNA apart in the hugely
competitive credit card market.
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Apart form offering benefits of 0% interest for seven months on all
purchases made through the card, it carries a low annual
percentage rate (APR) of 11.9%. Further, the card offers benefits
of long balance transfer and the handling fees charged is amongst
the least in UK.
The Everyday card provides cardholders with 0% interest for a
period of 17 months on all balance transfers carried out within 60
days of opening an account with the bank. Further, it charges
handling fees of only 2%.
Through the latest technology - known as Contactless - the card
enables the holders to make payments below £20 ($32.3) rapidly and
securely without using a personal Identification number (PIN). Such
payments are protected by the same technology as chip & PIN.
Management at MBNA believes that the Everyday credit card ranks
amongst the comprehensive credit cards introduced by the bank. With
a low APR and handling charges, along with enormous promotional
benefits, the card will be an asset to the consumers.
Bank of America has been actively issuing cards to further augment
its non-interest income. In May, the bank issued travel cards in
the U.S., catering to the needs of frequent travelers. The
advantages of these cards included absence of foreign transaction
fees, no expiry date on points earned, no blackout dates,
complimentary concierge service and a bonus each year on the total
) and American Airlines (also known as AA) - a subsidiary of
) - tied up to launch a new travel benefit card - the
CitiBusiness/AAdvantage World MasterCard in the U.S. The card would
help small business owners save money and get maximum benefits from
Bank of America currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating. Considering the fundamentals, we
also maintain our long-term Neutral recommendation on the