MBNA 6 months 0%

almacmil

MBNA have just called offering 6 months 0% on card to account cash transfers. I can get £7k transferred for a £50 fee - can I make money back on this? Never stoozed before but this seems like a chance to try??

(Part of it will be used to pay off £780 on another card thus saving the interest so I guess I'm winning there anyway.)

Edit: Sorry, my question was (but I didn't make clear) how do I use this money to make money over the 6 months???

ffacoffipawb

almacmil wrote:

MBNA have just called offering 6 months 0% on card to account cash transfers. I can get £7k transferred for a £50 fee - can I make money back on this? Never stoozed before but this seems like a chance to try??

(Part of it will be used to pay off £780 on another card thus saving the interest so I guess I'm winning there anyway.)

Edit: Sorry, my question was (but I didn't make clear) how do I use this money to make money over the 6 months???

As MBNA require only £5 back every month (plus the £50 fee in month 1) on a 0% deal, you should be able to invest the £6950 for pretty much the full 6 months (the £5 repayments being buttons), earning (on a 5% account) just over £170 gross hence

Non taxpayer profit = £170 - £50 fee = £120
Basic taxpayer profit = £170 * 0.8 - £50 fee = £86
40% taxpayer profit = £170 * 0.6 - £50 fee = £52

So a profit is possible regardless of tax rate.