By BillCut
Last updated: 12 November 2026<\/p>\n
A credit card to bank account transfer lets you move money from your card limit into your bank account. It is usually costly. Such transfers generally carry a fee, interest often starts from the day of the transfer, and the usual interest free period does not apply. This guide explains how it works, shows an illustrative cost, lists cheaper options to compare and explains when it is a warning sign of debt stress.<\/p>\n\n
There are two common routes. In the first, the card issuer treats the transfer as a cash advance, similar to withdrawing cash at an ATM. In the second, a third party service takes the amount as a card payment, charges a service fee, and sends money to a bank account. Both use your credit limit as borrowed money.<\/p>\n
Terms differ from one issuer or service to another. Read your card agreement, the key facts statement and the lender\u2019s current published schedule of charges to see the fee, the interest rate and when interest starts. For general information on fair practice expected from lenders, see the RBI website<\/a>.<\/p>\n\n On normal card purchases, you may get a few weeks before interest applies if you pay the full bill. Cash type transactions are generally treated differently. Interest tends to start from the day you take the money, and paying the full bill later does not remove the interest already added. Read our explainer on interest free credit card periods<\/a> to see why.<\/p>\n\n The numbers below are illustrative. They are round, made up examples and not any bank\u2019s real rate or fee.<\/p>\nWhy is there usually no interest free period?<\/h2>\n
What can it cost? An illustrative example<\/h2>\n