Banks Woo Top Customers With Cheap Cash From Promo Checks

The four biggest U.S. banks are encouraging their most creditworthy customers to take on more debt, mailing credit-card balance-transfer offers with rates as low as zero percent even as they add fees for other services.

Bank of America Corp., the largest U.S. bank by assets, is offering some customers a teaser rate of zero percent plus transaction fees through June 2012. Customers who receive the promotions with balance-transfer checks may deposit the checks to use like a short-term loan, rather than paying off a balance at another financial institution. There is a one-time fee of $10 or 4 percent, whichever is greater, per transfer, according to the terms reviewed by Bloomberg News. JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co. are sending similar promotions.