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Sony Card Balance Transfer 0% 12 months

I have just opened an account with NBNA Sony card to get the free MP3 player. The nice lady I spoke to offerd me £1000s cash advance for a year at 0%. Ok the catch is there is a 2% charge. However, if say I can have £10K ( to make the maths easy!) and I invest this in a bank account that pays 5.0% for the year I would make £500. I have to pay NBNA £200 (2%) Gordon Brown £85 , I still make £125 for free.

Anyone done this or is there a catch I am missing?

Comments

  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    As this is an MBNA card , the first payment would be 2% only + £5 (thats the fee plus nil interest plus £5) Thereafter it's £5. So the average balance for 12 months is practically 98% of what they lend (and 100% of what you can deposit)

    Interest at 5% is therefore about 4.9% less 0.98% tax less 2% BT fee - that's about 1.9% (give or take) of the amount borrowed as net profit.

    £190 sound about right?
    .....under construction.... COVID is a [discontinued] scam
  • Clariman
    Clariman Posts: 1,484 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi Brad

    What you are considering doing has been done by many people - although preferably with cards that do not charge a Balance Transfer Fee. The technique is known as Stoozing and there is a separate MSE discussion board for it here. There is also the official stoozing website which I run along with Stooz (who the whole thing was named after) - the site is sponsored and supported by Martin Lewis and MSE. There are articles in both places about how to do it.

    Clariman
    Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk
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