Stooz check list for 1st run

gidion

I OPEN A KAUPTHING SAVINGS ACCOUNT.
What are the risks with this now that the PM of Iceland has just came out and said his whole country may be bankrupt soon?

I GET THE ABBEY ZERO CARD
This has 0% balance transfer and 0% interest for 6 months.

I BALANCE TRANSFER CASH FROM ABBEY ZERO CARD TO KAUPTHING
This costs me nothing correct?
Does abbey zero allow transfers to an account or only cards, in which case I guess I’d need the egg money card?
Lets say I get £10,000 from the abbey zero card

I SET UP DIRECT DEBIT TO PAY MONTHLY MINIMUM ON ABBEY ZERO CARD
I can set this up from my current account (where my wage is paid).

Situation now stands that I have £10,000 in my Kaupthing 6.55% saving account.
I have -£10,000 on my Abbey zero card

After 6 months (when zero card is about to run out)
Kaupthing account now has £10,000 plus £258.65 (earned via interest over 6 months).
Abbey zero card still has -£10,000 (as monthly payments came from my current account)

All good and fine. But now there are no 0% balance transfer cards around.
So I cash out my £258.65 (happy days) then balance transfer £10,000 from barclay card platinum (I assume that this depends on whether barlay want to give me as much as £10,000 as well. If not do I now have to aquire the £10,000 from numerous cards?) to abbey zero card.

Thus I now owe abbey £0 but instead owe Barclay £10,000.
Now this balance transfer cost me 2.5% , which is £250 !!
Barclay now runs for 14 months. Earning 6.55% interest., this comes to £613.96

Take away my balance transfer costs 613.96 – 250 leaves a profit of £363.96
So in 20 months I’ve made £258.65 + £363.96 a total of £622.61
That’s £373.56 pa profit.

So how are you guys making £1000 to £2000 pa ?
Even with £20,000 over 14 months with 2.5% BT fee your still making just £623.94 (ok, not JUST but you get what I mean).
To get upto the £1000+ profits pa you must need well over £35,000 and isn’t that now a bit risky with that being the maximum amount guaranteed by banks?

Oh, I’ve not even taken into account I would have to pay 40% tax on those profits L
Brings my profits down to £224.14pa

Is there anything stopping me transferring the cash from the credit cards to my mothers savings account? Thus having 0% tax?

MrOrchard

I wouldn't rely on any bank to let you have your £10,000 savings back in a hurry right now.

YorkshireBoy

gidion wrote: »

I OPEN A KAUPTHING SAVINGS ACCOUNT.

Sorry, for a moment there I thought you said you were going to open a Kaupthing savings account. Must've mis-heard you!

I GET THE ABBEY ZERO CARD
This has 0% balance transfer and 0% interest for 6 months.

Rumours that this card is being withdrawn shortly (next month?).

I BALANCE TRANSFER CASH FROM ABBEY ZERO CARD TO KAUPTHING

No can do. Abbey is not an SBT card, so you'll need a mule card such as Egg Money.

Lets say I get £10,000 from the abbey zero card

Good luck!

Situation now stands that I have £10,000 in my Kaupthing 6.55% saving account.

There's that word again. Could you spell it out because it sounds like you're saying K A U P T H I N G.

Abbey zero card still has -£10,000 (as monthly payments came from my current account)

...and where do the minimum payments go to? Your Abbey balance is somewhat less than £10K because your 2.25% minimum payments have reduced it...unless you're planning to slow-stooz the minimums each month?

...balance transfer £10,000 from barclay card platinum (I assume that this depends on whether barlay want to give me as much as £10,000 as well....

Barclaycard's maximum BT at 0% is £5K.

So how are you guys making £1000 to £2000 pa ?

£60K+ stooz pots, fee-free repeat deals, blitz approach to applications, basic rate tax payer, offset mortgage, etc, etc

To get upto the £1000+ profits pa you must need well over £35,000 and isn’t that now a bit risky with that being the maximum amount guaranteed by banks?

Why put it all with one bank. I have 5 or 6 accounts paying at least 6.5%.

Have you visited the official stoozing site at www.stoozing.com? If not, I suggest you do so and read the guides there.

Good luck with your stoozing.

gidion

Thanks for the reply Yorkshire Boy.
These questions were all written down late last night and copy pasted to the boards this morning (hence the Kaupthing).

So Kaupthing is now a no go.
So instead i'd most likely choose AA 7.2% saving account. (rate not yet dropped)

with the possible death of the abbey zero card i guess its just down to picking cards with the lowest BT fee and biting the bullet on that profit loss.
If i got the zero card before closure would they honour the offer as it currently stands though?

you mention fee-free repeat deals, is this literally just haggeling over the phone regardless of what their T's & C's say?

Also. If they ever killed off the egg money card, would that mean the death of stoozing as well?

oh also, is it possible to use egg card to transfer to my mothers account (thus getting 0% tax, or would i need to goto my account and then transfer fromt here to hers?) or are both illegal?

Thanks.

YorkshireBoy

gidion wrote: »

These questions were all written down late last night and copy pasted to the boards this morning (hence the Kaupthing).

You were considering Kaupthing as recently as last night! :eek:

So instead i'd most likely choose AA 7.2% saving account. (rate not yet dropped)

They have a 7.21% AER account...is that the one? If so, that's a one year fixed rate with no withdrawals isn't it? Are you sure that's a suitable savings vehicle for a stooz pot?

with the possible death of the abbey zero card i guess its just down to picking cards with the lowest BT fee and biting the bullet on that profit loss.

Check out the likely profit before applying anywhere...www.stoozing.com/calc.htm

Be sure to err on the side of caution for both duration (unlikely to get 9 months out of a 9 month card) and savings rate achievable (looks like rates may fall?)

If i got the zero card before closure would they honour the offer as it currently stands though?

They'll definitely honour what you sign for. They 'should' honour what you apply for.

you mention fee-free repeat deals, is this literally just haggeling over the phone regardless of what their T's & C's say?

Yes.

Also. If they ever killed off the egg money card, would that mean the death of stoozing as well?

No, it would just make it harder/less profitable.

oh also, is it possible to use egg card to transfer to my mothers account (thus getting 0% tax, or would i need to goto my account and then transfer fromt here to hers?)

It's best if you route cash to the current account that your direct debit is set up from. Actioning a transfer to a 'new' current account will likely prompt a call from Egg to check it's a genuine transaction. Are you happy to talk to them about it?

or are both illegal?

Obtaining money by deception is against the law. Deception to gain a pecuniary advantage, ie fraud, is also against the law.

Read the T&C's to see if either could apply.