Abbey's new credit card storms to the top of the best buy tables with no fees for balance transfers, foreign exchange or cash.

The card also charges 0% interest on balance transfers and purchases for six months.

Normally Abbey's foreign exchange fee is 2.75% and its balance transfer and cash advance fees are 2.5%, or a minimum of £3. However, on Zero these fees are waived. In addition, the card offers an introductory six-month interest-free period on balance transfers and purchases.

Roger Lovering, Managing Director of Abbey Credit Cards, says: "We promised the market that we would continue to innovate and that is exactly what we've done. The Abbey Zero card is the first ever card to eliminate all these fees at once.

"With no balance transfer fee and six months interest-free, it's the perfect card to transfer a debt you want to pay off quickly and has clear advantages for the summer, too. No foreign exchange fee makes holiday spending less expensive and Zero also has no cash advance fee for those rare times you might need cash in an emergency."

Existing customers with the current Abbey card will also benefit with foreign exchange fees automatically lifted for the holiday period, from 1 June until the end of August. Other features of the Zero card include:

• 18.9% APR on all purchases (after the introductory 6 months interest-free period)
• 25.9% APR on cash advances (calculated from the day of withdrawal)
• Fees for late payments, exceeding the credit limit, returned cheques and returned direct debits will still apply, and are £12.

Roger Lovering continued: "Abbey Zero is the only one of its kind and it's not just an acquisition offer - the fee-free offering applies on an ongoing basis on this card - and we're extending the fee-free foreign exchange to existing customers for summer, too. What's more, it won't stop there - our ambition is to 'think differently' and so existing and new customers can expect to see more innovation from us later in the year."

Michelle Slade of Moneyfacts commented: "The launch of this card is fantastic news for consumers. Not only will those looking for a short-term balance transfer deal benefit but also those who are about to embark on their summer holiday. In a world where rates and charges are increasing on credit cards it's good to see a lender bucking the trend and removing some of these charges."

Abbey brought its credit card business back in house last year and the Abbey Zero card is its second major innovation since then. The first was the popular 5% supermarket cashback deal, which launched in September and is due to run until the end of July.

The new card is available from Abbey branches and online from April 28.

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