Barclaycard 2.9% BT - who's excited?

Phaedrus_2

Many people posting seem to think that Barclaycard's 'life of balance' BT offer at 2.9% fixed is unmissable but I disagree. As an investment vehicle it's a dog! Let's say the fund xferred to your Building Soc a/c pays 5.35%p.a. After 40% tax this is 3.21%-forget it!
If your tax is 20% you receive 4.28%, netting you 1.38% pa. On, say, £6700 you will make £186 total over 7 years (£26.57/yr) as there is an initial charge of 2% and min monthly payback is 2%.Lots of work for little return and if interest rates fall things worsen.
With credit tied up it also limits your credit with more sensible 'stoozing' cards!

Derek_Duval

Agreed, it's not ideal for stoozers, but someone who wants a long term cheap loan, who doesn't want all the hassle of swopping cards, 2.9% is much better than the best loan rates out there.

Walletwatch

Many people posting seem to think that Barclaycard's 'life of balance' BT offer at 2.9% fixed is unmissable but I disagree. As an investment vehicle it's a dog! Let's say the fund xferred to your Building Soc a/c pays 5.35%p.a. After 40% tax this is 3.21%-forget it!
If your tax is 20% you receive 4.28%, netting you 1.38% pa. On, say, £6700 you will make £186 total over 7 years (£26.57/yr) as there is an initial charge of 2% and min monthly payback is 2%.Lots of work for little return and if interest rates fall things worsen.
With credit tied up it also limits your credit with more sensible 'stoozing' cards!

Well, it doesn't make you money that you can see in the form of a reasonable interest income in your savings account, but let us not forget, it is virtually a 0% overdraft for life, unless interest rates go down so low that it ceases to make sense.

Also, let us not forget, as the previous post says, while stoozers would consider it a dog, as credit limits are locked up and stuff like that, (a) one doesn't have to shop around for another 0% deal after six or nine months, and (b) let's face it, 0% deals are getting extinct, and it won't be long when banks will get wise and stop giving such offers.

deemy2004

Many people posting seem to think that Barclaycard's 'life of balance' BT offer at 2.9% fixed is unmissable but I disagree. As an investment vehicle it's a dog! Let's say the fund xferred to your Building Soc a/c pays 5.35%p.a. After 40% tax this is 3.21%-forget it!
!

There are so many ways to benefit from the 2.9% offer.

1. If your spouse is not working, then put the savings in their name, so you get the interest gross.
2. Use the cash to offset a mortgage or loan (if you are able to)
3. Lump sum payment off the mortgage (upto any annual limits allowable).
4. If you are looking for a loan, well you can't beat 2.9% !! There is nothing on the market which compares for the lifetime of a loan, well unless you get a 1.9% offer

So many more....

Milarky

Many people posting seem to think that Barclaycard's 'life of balance' BT offer at 2.9% fixed is unmissable but I disagree.

It actually worked out to be to my advantage when I thought I had thingyed up  :D

Had the original 0% for life when spending £1 per month deal... When the 2.9 for life deal was offered BC could have carried on taking 2% of balance from the 0% balance as they had been - because that is at the lowest rate. But instead they have taken 2% of [new balance] from the 2.9% first. Thus whilst in itself the 2.9% balance does not make much of a return, the existing 0% balance isn't being reduced as it would have been and won't start to be until the 2.9 balance is repaid [about 2 1/2 years].

But I was just fortunate, I think  ??? [remember, that the underlying rate on the 0% balance is 6.9% unless spending is made on the card each month. The fact that their 'contractual' rate is higher must explain why they are treating the 2.9% as 'lowest']

creditman

The 2.9% offer finished recently. They are now offering 5.9% .

Margaret_Millne

I just got 2.9% 2 minutes ago so it still worked for me. 2.9% with a 2% fee - not ideal but if you need to spread a debt over a long time it is still a great help.

djblamire

Is anyone on here on the original 0% for life (minimum spend 1 penny per month) ???

It is doing well for me

Daniel

Milarky

Is anyone on here on the original 0% for life (minimum spend 1 penny per month) ???

It is doing well for me

Daniel

Yes [see my message 2 replies up]. I have the old offer AND the 2.9 life of balance added to that [Barclaycard upped my credit limit to accommodate this]. As explained, they process the repayments: First 2.9% [being reduced] Second 0% [currently unchanged] Third 15.9% on monthly purchases [being increased gradually from zero]. The 2.9 balance will be gone in about 2 years time I estimate, and then the payments will start reducing the 0% balance again. The sums required are fiendish, but I am better off than I would have been by taking up this offer. [A small fringe benefit was that the 50p min was no longer being taken from the spending balance]

General remark: The good thing about the 2.9 life of balance in its own right is not having to make transactions on the card - it can just be forgotten about with a direct debit taking minimum payments.

funkymonkey

the 2.9% still worked today for me too - and they upped my limit from 2,800 to 5,600 and upgraded me to a gold card which is handy as the min payment drops from 2.5% to 2% so whilst i am at uni starting in april i can pay the minimum more comfortably!

AlstDavis

Hi I have just moved over to the 2.9% deal with barclaycard. I would like to point out that there is a flaw in the deal if you are not careful. It is this..

If you are taking the payment protection for this card then Barclaycard take that as a payment and will add it onto the higher interest rate, until the 2.9% is paid off!
Obviously this can amount to quite a bit of time & interetst, if you are paying it off long term.
Just thought i would warn you!
We got caught out on the 1st statement & queried it, to there credit Barclaycard have worked out the interest over 4yrs which is how long it will take to pay off our loan with minimum payments and credited to our account.
Has anyone else had this experience?