I have 10k for 8 months - what to do?

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I have paid off my cc debts over last 2-3 years so no cc debt.

MBNA called me to offer me up to 10k interest free until July 2009 with £300 handling fee.

If i could invest it wisely for these 8/9 months and make at least £300 I will break even, anything more and its worth my while.

Any ideas where to put the money to maximise return?
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Comments

  • IT_nerd
    IT_nerd Posts: 442 Forumite
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    Is it likely you will end up dipping into it, if you know it's there?
    Savings
    £14,200 with £1100 M.I.A. presumed dead.
  • irish_eyes_3
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    no chance at all,
  • opinions4u
    opinions4u Posts: 19,411 Forumite
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    http://www.askbm.co.uk/savings/t/fixed/intro.asp

    6.85% for 6 months = £274 net of basic rate tax.

    Pick up 5% in an easy access account for a month = £34 net

    Allow the other month to receive / clear / repay the £10k.

    You'll make a £8 profit!

    Forget to make a payment, get charged a nasty fee and a high rate of interest and lose £hundreds.

    Risk v Reward not worth the effort.
  • IT_nerd
    IT_nerd Posts: 442 Forumite
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    7K profit? Eh?|
    Savings
    £14,200 with £1100 M.I.A. presumed dead.
  • irish_eyes_3
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    opinions4u wrote: »
    http://www.askbm.co.uk/savings/t/fixed/intro.asp

    6.85% for 6 months = £274 net of basic rate tax.

    Pick up 5% in an easy access account for a month = £34 net

    Allow the other month to receive / clear / repay the £10k.

    You'll make a £8 profit!

    Forget to make a payment, get charged a nasty fee and a high rate of interest and lose £hundreds.

    Risk v Reward not worth the effort.


    doesnt look like its worth it,
  • freddysmith
    freddysmith Posts: 2,002 Forumite
    First Anniversary Combo Breaker First Post
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    All they are doing is putting temptation in your way because they know your spending habits.
    You say 'invest it wisely', the best advice I would give is NOT to take the offer up. £10,000 might sound a lot but as you have to pay a £300 fee for this money interest free, its really not worth it.
  • irish_eyes_3
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    All they are doing is putting temptation in your way because they know your spending habits.
    You say 'invest it wisely', the best advice I would give is NOT to take the offer up. £10,000 might sound a lot but as you have to pay a £300 fee for this money interest free, its really not worth it.

    I havent spent on a cc in abut 3 years since i was at uni so theres no chance of me dipping into it and my spending habits with them are non existent as i opened the card originally to tart and never have actually purchased anythign with it.

    But i guess i am being naive thinking i coudl earn more than the £300!
  • freddysmith
    freddysmith Posts: 2,002 Forumite
    First Anniversary Combo Breaker First Post
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    Maths is a wonderful thing.....glad you have worked it out.
  • irish_eyes_3
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    Maths is a wonderful thing.....glad you have worked it out.

    ouch.

    maths is a great thing but so is knowing what are the best deals on the market,

    and that knowledge is what i was looking for here.
  • freddysmith
    freddysmith Posts: 2,002 Forumite
    First Anniversary Combo Breaker First Post
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    Whats the ouch for?

    The guy did the maths so you now realise it is not worth saving the £10000 to make much of a profit.
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