Bank of Ireland claims new credit card offerings are not what they seem. The bank disagrees with recent reports suggesting interest rates on Tesco's credit cards and earlier offerings from MBNA are substantially below the rates offered by established players. In a statement, the bank highlights its low rate card - 12.9 per cent APR - saying Tesco charges penalties that do not apply with its cards.

However, it does not mention that its low rate Advantage card has no interest-free period so customers are charged interest from the day of purchase. Most cards offer a 56-day interest-free period. Bank of Ireland's standard and gold credit card APRs are among the highest in the market at 19.3 per cent and 18.9 per cent, respectively.