What high interest account to put your stoozes into?

CupCake_3

What high interest saving accounts/ISA's etc do people shove the money they are stoozing on cards?

I guess its an account that earns money monthly as most card stoozing can only be done over 9months before its no longer worth while?

Thoughts?

Thanks

Tadger

I think you mean an account that pays interest monthly ??

This is not always the best option as annual interest paying accounts tend to pay a higher rate. having the money in the account for only 9 months won't be a problem if your prepared to wait the extra 3 months for the interest payment. ... of course by hopefully by then you'll have transferd the balance to your next stoozing card !!

Forgot to mention that I personally keep my money in an offset mortgage, where the tax man can't get his hands on any of it !!

CupCake_3

Ok so this has uncovered something I didn't know. The accounts I have, pay interest monthly... I guess the key is to work out how much interest it will earn you over the year and work out whether its worthwhile paying 3 months charges in return for 9months worth of interest?

I don't have a mortgage (i've got all that to come!) yet, but just trying to make my good credit rating work in my favour.

Tadger

NO NO NO !!

I didn't mean that you borrow the money on the credit card for 12 months !!

The interest you'd pay to you credit card company after the interest free period expires would in most cases be much higher than what you'd gain leaving the money in savings, so that is a big mistake.

I meant that after the 9 months you pay it back from your savings account, and but you'd have to wait 12 months before you received the interest (on 9 months worth of deposited money)

And of course you must remember to make the minimum payments each money on the card otherwise the CC company will probably remove your interest free offer, and also if the card is only interest free for balance transfers and not purchases then you should also never purchase anything with that card.

CupCake_3

Ok so is the amount of interest i would generate based on the balance at the end of the 12mth period? i.e.

Account Balance Start of year: £6,000
(In September - pay of CC)
Account Balance End of year: £1,500

Do I earn interest on £1500 or an average over the past 12mths?

grumbler

For all accounts (regardless the interest is paid monthly or yearly) interest is calculated daily, i.e. you earn interest every day on the balance you have this day.

magentadreamer

What you'd get is interest for 9 months on £6K then 3 months at £1.5k. Paid out on what ever date the account pays out it's interest. Most in my experience seem to favour the end of March when paying out interest.

A decent paying account at the moment is A&L online saver currently paying out 5.15% interest. You might also like to check out Cahoot as well -and you could get cashback via https://www.quidco.com for opening one - I got £25 for opening a savings account and sticking I think a pound in it - I opened 3 savings accounts at the same time practically so think it was a £1.

CupCake_3

Thank you.

MiserlyMartin

CupCake wrote:

I don't have a mortgage (i've got all that to come!) yet, but just trying to make my good credit rating work in my favour.

That raises a thought. How does stoozing affect your ability to get a mortgage. Is it not a good idea to stooze if you haven't got a mortgage and intend to get one???

Bokken_2

MiserlyMartin wrote:

That raises a thought. How does stoozing affect your ability to get a mortgage. Is it not a good idea to stooze if you haven't got a mortgage and intend to get one???

If this is the case I would suggest that you stop stoozing for several months and secure the mortgage that you want and then start stoozing again after wards .This time you should stooz into your mortgage and endeavour to reduce the balance or pay no interest on your mortgage at all.