Finance glossary
Promotional Rate
Also known as: Introductory rate, Teaser rate
In simple terms
A promotional rate is a special, temporary low (often 0%) rate offered to attract you to a credit card or loan. When it ends, the rate jumps to the standard, much higher one.
On this page
What does promotional rate mean?
A promotional rate is a temporary introductory rate — frequently 0% — offered on products like credit cards (for purchases or balance transfers) and sometimes other borrowing, to encourage you to take out or switch to the deal.
It lasts for a set number of months. Once the promotional period ends, the rate reverts to the account’s standard rate, which is usually far higher.
How a promotional rate works
During the promotional period, you pay little or no interest, so more of your payment reduces the balance. The offer has a fixed end date, after which the standard rate applies to whatever balance remains.
Conditions often apply: you may need to make at least the minimum payment on time each month, and missing a payment can end the promotional rate early. New spending or cash advances may not be covered by the promotion.
How could this affect me?
A promotional rate can save real money if you use it to clear a balance before it ends. The trick is to plan your payments so the balance is gone (or moved) before the standard rate kicks in.
It becomes costly if you only make minimum payments, forget the end date, or breach the conditions. Note the expiry date and set payments to clear the balance in time.
Things to watch out for
- When the promotional period ends, the rate jumps to the standard, higher rate.
- Missing a payment can cancel the promotional rate early.
- The offer may not cover new purchases or cash advances.
- Paying only the minimum can leave a big balance when the deal ends.
Know your rights
- Under FCA rules, adverts quoting a promotional rate must make the standard rate and the end of the promotion clear, and show a representative example where required.
- You are entitled to clear pre-contract information about how and when the rate changes.
- If a promotional offer was presented misleadingly, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- FCA, CONC 3 — financial promotions for credit (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, 0% and introductory credit card offers (opens in a new tab). Accessed 22 Aug 2026.