Pay on 0% card and save cash, or pay in cash?

Leaseholder49

Not sure if this is the right board, but it's sort of a savings question.

I've got to pay for a holiday this week and I'm not sure if I should pay by card or cash.

I can pay on a 0% card which doesn't need to be paid off until next May, but there is a 2% credit card fee. If I pay on the card I could put the equivalent cash into my ISA paying 3%.

Will I make more out of the savings than I will lose on the fee?

I'm sure it's a pretty basic question but I can't work it out.

Thanks!

pfpf

well, these are my very rough figures.

per £1000.00

1000 @ 2% = £20.00

1000 @ 3% / 12 = £2.50 per month.

£2.50 x 9 (sept - may) = £22.50

so £2.50 better off assuming 1st sept - 31st may, which it wont be.

conclusion? pay cash.

Ximian

I'd prefer to pay cash too, the benefits seem very little by paying with credit card. The only time I'd pay by credit card and bank the cash is IF the ISA/Savings interest rate was very attractive (at the moment not the case).
I take it that the 2% is a credit card booking fee, are there any other credit card fees, for example balance transfer fees?

steady__eddie

There is one other benefit to be gained when paying by credit card, peace of mind. Given that the holiday is costing more than £100 at least you will be covered by the c.c. company for a claim if the tour operator does a Polly Peck and you will get your hard earned back without too much hassle. Sorry to look on the dark side but a couple of companies have folded recently. :mad:

VT82

steady__eddie wrote: »

There is one other benefit to be gained when paying by credit card, peace of mind. Given that the holiday is costing more than £100 at least you will be covered by the c.c. company for a claim if the tour operator does a Polly Peck and you will get your hard earned back without too much hassle. Sorry to look on the dark side but a couple of companies have folded recently. :mad:

For this reason, and to keep more in savings in case you suddenly need it, I would pay by card. Can you pay on a 0% Tesco card to get points which will help make up for the fee?

I put £4k of my new car on a 0% Tesco card earlier this year. It cost me £80 in the 2% fee, but I got about 1,750 points (1,000 for the spend and 750 bonus points) and continued to get 3%ish (less tax) on my savings. And the £70 of Strada vouchers I got with the points sorted my birthday meal :j

someone

steady__eddie wrote: »

There is one other benefit to be gained when paying by credit card, peace of mind. Given that the holiday is costing more than £100 at least you will be covered by the c.c. company for a claim if the tour operator does a Polly Peck and you will get your hard earned back without too much hassle. Sorry to look on the dark side but a couple of companies have folded recently. :mad:

You can do a part payment on a card, so pay £100 on your card and pay the rest in cash. It will cost you £2 for the protection of the card but you are protected for the full amount (including the cash part).

Loopgames

I'd pay by card for peace of mind. consider any 'extra' cost as insurance. Don't some credit card companies insure you against losses if, say, your holiday provider goes into administration?