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should I take this cash
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globalds
Posts: 9,431 Forumite
in Credit cards
I have just had a phone call from MBNA My card is Virgin.
The guy offered me a cash transfer on my card ...I can have £7500 untill April of 2008 at 1.9% and a transfer fee of £75.00 .
I asked for one day to think about this .
Interest will work out at £12.08 a month with the balance transfer of £75.00.
I get a bill of £171.64 for having the cash for 8 months ....
The question ...is it worth me saying yes.
How much will i make on a normal saver account for 8 months ?
The guy offered me a cash transfer on my card ...I can have £7500 untill April of 2008 at 1.9% and a transfer fee of £75.00 .
I asked for one day to think about this .
Interest will work out at £12.08 a month with the balance transfer of £75.00.
I get a bill of £171.64 for having the cash for 8 months ....
The question ...is it worth me saying yes.
How much will i make on a normal saver account for 8 months ?
0
Comments
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About £278. That's an average balance of £7400 for 9 months (not 8) @ 5% net (6.25% gross and a basic rate taxpayer) about £100 profit......under construction.... COVID is a [discontinued] scam0
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My last question was if he could extend the offer to 12 months ...
£100 isn't great ...I was hoping to over pay my mortgage by a £1000 within about 9 months so This cash in the bank would let me do that early .
Thanks for the quick response ......I wish they had just given me £7500 ,it would make all these calculations so much easier...0 -
I make it about £322 profit if you and your partner stick it in two ING ISA accounts(£3000 limit each before tax) for six months until 28th Dec making 6.55% tax free after that stick it in a high interest account,Sainsbury's is currently 6%.
i would have the money off them so it is earning me money and not them.Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D0 -
I make it about £322 profit if you and your partner stick it in two ING ISA accounts
I don't think that calculation is right.
Please show your calculations so that we can see if it's right.
Also don't forget that montly payments have to be made thereby reducing the amount available.0 -
According to www.whatsthecost.com/stoozing.aspx there's only £80 profit in this deal.
Assumptions:
8 month stooz (allowing for delays at each end)
Basic rate tax payer
BT fee repaid with first min payment
6.25% Sainsburys stooz pot
Virgin min payments are likely to go to £25 shortly
OP's statement date is the 1st of the month
As an aside, I too have the £75 cap on the BT fee (and currently have a 9 month 0% repeat running), but according to a recent notice of variation the BT fee for existing customers is moving to 2.98% uncapped from September.0 -
oops sorry ,
I mean to put £226.obviously fat fingers got in the way .
£3000 placed in two ING ISA accounts for the remaing 5months of the 6.55% period = £79,87 x2 =£159.74.
Take it out and put in a similar account to sainsbury's at 6.22% for the remaing 7months will give you £66.55 after tax.
This still leaves you £1500 to place in another Sainsbury's account for the whole year earnib about £72 after tax. That should bring you up to £298.29 for the year.There are no other fees invloved with these accounts if you use them on line but there may be BT fees from Virgin initially as mentioned by Yorkshireboy.Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D0 -
Cheeers for the information .The offer was a cash transfer from virgin to my account of £7500..95% of card value,not an offer of credit.or balance transfer
I unfortunately have been stuck on M40 then m42 for the last six hours so I may well have missded the call back ..I will admit i'm more concerned with a cool can of beer than cash at the momment .......I will come back to my senses tomorow...cheers again for the effort from everyone.0 -
Right then, I phoned back virgin and the first 2 people I spoke to said they could not alter rates ,they told me to phone rates on 0800 7831116.
I just gave them a call and told them I'd had a phone call offering me a cash transfer of £7500 at 1.9% and maxed at £75.00 transfer fee untill April 2008 ...And the nice lady said "hold on"....then "ok .i'll do that for you now ,Which bank account do you want the money in ".
I applied and was accepted for sainsburys online saver Saturday so in 6 days when the money comes through I will send it straight to that account .
My First Stooze ....0
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