What is an Interest Saver Payment and how is it calculated?

Capital One sometimes offers the chance to transfer balances at a promotional rate. View important rates and disclosures. And if you take advantage of that offer, there’s a way you can avoid interest charges on new purchases—they’re called Interest Saver Payments.

So what is an Interest Saver Payment? How is it calculated? And where can you find the Interest Saver Payment on your Capital One account? This comprehensive guide has the answers to those questions and more. 

What you’ll learn:

• An Interest Saver Payment is a specified payment amount you can apply to your credit card account to avoid paying interest on new purchases during a balance transfer promotional period.

• Your Interest Saver Payment amount is the minimum payment plus the difference between your new balance and the promotional balance.

• You can find your Interest Saver Payment in the payment information section on your credit card statement.

An Interest Saver Payment is a designated credit card payment amount you can use to avoid interest on new purchases during the promotional period. The Interest Saver Payment includes the minimum payment plus all nonpromotional balances. That might include things like purchases, cash advances, fees and finance charges. 

During a balance transfer promotional period, you can only avoid interest on purchases for the period between the purchase date and the next billing cycle date. And if your promotional rate isn’t 0%, you’ll still be charged interest for your balance transfer. Capital One customers who accept a promotional rate offer for a balance transfer may have the option to make Interest Saver Payments. View important rates and disclosures.

After your promotional rate expires, Interest Saver Payments will no longer be available, and the standard annual percentage rate (APR) will apply. 

Keep in mind that the standard rate will likely be higher than the promotional rate. So it’s a good idea to make note of when your promotional period starts and ends. That way, you’re not surprised when a new interest rate kicks in.

To calculate the Interest Saver Payment, subtract the promotional balance from the total new balance and then add the minimum payment.

Here’s an example of how an Interest Saver Payment would be calculated for an account with a balance transfer offer at a promotional 0% APR:

To find your Interest Saver Payment, sign in to your Capital One account, find your credit card statement and look for the payment information section—your Interest Saver Payment is shown there. If you get your statements through the mail, you can also find the information on your paper statements.

When you make your monthly payment, you can choose to select Interest Saver Payment. But the option is available only to eligible cardholders who initiated a balance transfer at a promotional APR. View important rates and disclosures.

AutoPay can be a great way to avoid late credit card payments. But if you want to make the Interest Saver Payment for your Capital One account, you’re going to need to cancel AutoPay until the promotional period ends. Then manually make your Interest Saver Payment on time every billing cycle. If you keep AutoPay on, you’ll lose some of the benefits of the promotional offer.

It might be helpful to add reminders to your calendar. Then once the promotional period ends and you’re not making Interest Saver Payments anymore, you can turn AutoPay back on.

Interest Saver Payments can help you avoid interest charges on new purchases you make during a balance transfer promotional period.

Considering a balance transfer? Get started by exploring Capital One cards with 0% APR. You can even see if you’ll be approved—without any harm to your credit scores.