Balance Transfer Law and Legal Definition

Transfer of outstanding balance in an account to another account is balance transfer. Balance transfer can be from one credit card to another. The purpose of balance transfer is to obtain a lower interest rate on the outstanding balance. Most of the banks impose charge on balance transfer. Fee charged for balance transfer is known as Balance Transfer Fee. A balance transfer can be made between two similar accounts or different accounts. Accounts in which transfer can be made are: credit card account, savings account, checking account and trading account.