BT moves into credit card market

This is the first financial product launched by BT

Telecoms firm BT has launched a credit card with an automatic reward scheme which promises to reduce home telephone and broadband bills.

Each time account holders use the BT card, money will be taken off their phone bill, up to a maximum £75 a year.

For example, if customers spend £250 each month they will receive £1.25 off their phone or broadband bill.

However, customers looking to transfer debt from other credit cards onto the BT card will have to pay a 3% fee.

This is the first time that BT has launched a financial product.

BT joins a long line of non-financial firms, such as the AA and the Post Office, which have been tempted into the credit card market.

The card, available in four colours, will carry the BT logo and is issued and managed by MBNA bank.