my calculations... am i right?

steveOooo

Have a Virgin Credit card... have the 0% balance transfer rate until 16th Nov 2009 (although on the letter sent with the cheques it states 01 November 2009)

have 4,400 credit

95% off this can be used in a cheque payment

2.98 handling fee.

have the cheques ready to go. I want to pay as mush as possible from my bank account then into a isa, remainder into a normal savings account.

Just wanted to check my calculations...

1. 95% off 4400

100-95 = 5%

5% / 100 = 0.05

4400 x 0.05 = 220

4400 - 220 = 4180


2. 4180 - 2.98% =

100-2.98=97.02
97.02/100=0.9702

4180 x 0.9702 = 4055.436

so by my calculations, the max i can write a cheque for is £4055.44 - obviously ill leave a error margin so maybe write a cheque for £4000 - £3,600 in a cash isa, £400 in a savings account?

NickX

No, the maximum cheque you can write is £4180.

The reason it is 95% of your Credit Limit is to allow space for the fee.

So your starting balance would be : 4180 * (1.0298) = £4304.56

Hence you remain within your limit of £4400.

YorkshireBoy

There's no need to even leave your seat.

Give them a ring and ask them to transfer the cash directly to your current account instead.

Just check that the transaction will still be at 0% (it should be but best to confirm), and make a note of the CSA's name and date/time of the call.

Calculate your return here...

http://www.stoozing.com/calc.htm


EDIT: You have 0% until your November 2009 statement date. Why not change the statement date to the 28th of the month during the activation call?

steveOooo

gd point... theres a balance transfer on my virgin account online, so shall i just do it via online? would i still have the 95% cap?

YorkshireBoy

steveOooo wrote: »

gd point... theres a balance transfer on my virgin account online, so shall i just do it via online? would i still have the 95% cap?

I'd always action the transfer on the phone. That way, you can ask questions and take notes.

The 95% cap is detailed online, yes.

steveOooo

so if i stick 3600 in the barclays cash isa - which is 6.8% + 1% offer - total 7.8% - will i get £252 per month interest? surely not? thats loads of money! i hope my calculations are right:D

NickX

steveOooo wrote: »

so if i stick 3600 in the barclays cash isa - which is 6.8% + 1% offer - total 7.8% - will i get £252 per month interest? surely not? thats loads of money! i hope my calculations are right:D

I'm afraid not Steve, the interest is per annum. I make it around £280 per year on the basis if 7.8%.

Pity its not per month really

Richard019

steveOooo wrote: »

so if i stick 3600 in the barclays cash isa - which is 6.8% + 1% offer - total 7.8% - will i get £252 per month interest? surely not? thats loads of money! i hope my calculations are right:D

Other than NickX's point. Are you sure that's what they're offering at the moment?

Looking at the Barclay's website it says that their Tax Haven ISAs are from 6.25% and that that includes the 1% bonus (ie they're really 5.25% +1% offer) not 6.25% +1% offer. The normal cash ISAs page starts at 4.01% and there's no mention of a bonus being payable.

steveOooo

that is strange, yesterday it was saying 6.xx% now it says 4.xx% - with no mention of the 1% as youve said.. think ill pop in and ask about the isa, see what the actual rate is..

Richard019

steveOooo wrote: »

that is strange, yesterday it was saying 6.xx% now it says 4.xx% - with no mention of the 1% as youve said.. think ill pop in and ask about the isa, see what the actual rate is..

They have two types, the Tax Haven Cash ISA and the normal cash ISA. I expect it's the Tax Haven one you're after, especially with the 1% bonus bit being mentioned. Like I say though, the bonus is included in the advertised rate rather than being on top of it.