lloyds extension offered, accept or not

Morning everyone,

Just made a call to Lloyds to close, who then offered me a 6 month ext at 0%, but with a 2 1/2% fee. They will let me transfer 11K approx....The money will sit in a Cahoot savings acc at 4.8. Is there much profit to be made here ? I make it £440 just to transfer the money.

Any advice or tips.:confused:

Regards Paul

Replies

  • ClarimanClariman Forumite
    1.5K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    You will make a loss on that if the fee is uncapped. I would call them back and say that you will keep the card if they will waive the BT fee. They may not do that for you, but they may offer to cap it. However, from a negotiating point of view - tell them that they can retain your custom if they will waive the BT fee.

    Detailed numbers ....

    I make it £275 cost to do the Balance Transfer (2.5% of £11,000)

    Money earned before tax £264 (£11,000 at 4.8% for half a year)

    Money earned after standard rate tax £211.20 (20% tax)

    Loss of £63.80
    Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk
  • paultw5paultw5 Forumite
    146 Posts
    Cheers Clariman, i have just come back to change my BT calculation to £275, and you have replied already..Where i got 440 from i don't know..

    I'll call them back and see if they will move on the fee, but after my previous call it looks un-likely..

    Cheers again, Paul...
  • ClarimanClariman Forumite
    1.5K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    LTSB have offered other customers additional 0% periods without fees. I would be very clear.

    "Thanks for the offer, but I can't afford a BT fee of £275. If you waive the fee I will keep my account."

    They might just do it or they might come back and offer you a capped fee. If they say they can't waive the fee, ask if they can cap it at £50.

    C
    Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk
  • paultw5paultw5 Forumite
    146 Posts
    Phoned back with no joy, although did get some useful imfo....They are currently not allowed to waive the fee, but said these offers change all the time, and possibly soon. Took that to mean not to cancel just yet. they also said that they often send out offers to existing customers, and i could possibly get one soon...

    So decided to hang on for the time being, and phone back in a week or two..

    Probably wont hear from them at all, but you never know..

    Cheers Paul..
  • ClarimanClariman Forumite
    1.5K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    paultw5 wrote:
    Phoned back with no joy, although did get some useful imfo....They are currently not allowed to waive the fee, but said these offers change all the time, and possibly soon. Took that to mean not to cancel just yet. they also said that they often send out offers to existing customers, and i could possibly get one soon...

    So decided to hang on for the time being, and phone back in a week or two..

    Hope you don't mind me saying Paul but they "gotcha". Customer Retentions did their job. They prevented you from cancelling on the flimsy basis that you might get something from them in the future and they did not have to give anything in return. :( That is a tactic that they employ.

    Your call but I would close the card.
    Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk
  • paultw5paultw5 Forumite
    146 Posts
    If i had a low limit, then i would of closed it, but at over £12K i can wait a couple of weeks and try again, since my last card only gave a measley £2K limit (barclaycard) you can see my reluctance to close..

    Cheers Paul
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