0% credit card best to stooze to ISA or 1% cashback card?

SpideressUK

I have approx £2,800 each month of money I normally put on a credit card and pay it off in full when it is due.

Would I be better putting this £2,800 onto a 0% on new balances for 13 months and putting the £2,800 cash into a 2.85% ISA each month OR would I be better just getting a 1% cash back on all purchases credit card and putting the £2,800 each month onto that?


I can work out that I would get £28 cashback per month from the 1% card but have no idea how to work out how much in interest I would get each month if that went into an ISA

System

5100 * 1.0285 = 5245.35

So £145.35 back on the ISA

Or if you put 5100 in before April and transferred it you could have £10680 and get 2.85% interest on that

Not sure if that's right but it seems like it

planteria

i don't understand the question....you mean you have £2800 spare each month?

drussellh

hjgjhjknhklnk;:rotfl:

2sides2everystory

If you really make £2800 regular credit card purchases each month and you have a card which allows your purchases interest free for 13 months AND has enough headroom in credit limit to absorb 13 x £2800 then you may wish to consider a special kind of 12 month regular saver contract like this one which will earn you around £645 interest before tax if you save £2,000 a month: http://www.barclayswealth.com/international/savings/short-medium-savings-category/monthly-saver.htm

It is not tax free like an ISA and it is a variable rate but it has not changed since July 2009.

Of course if you did that you might say well what about the other £800 a month? Well the spare £800 might by the end of the year be largely swallowed up by the credit card minimum monthly payment, would it not?

superted187

Even then - how can you turn the credit into cash without incurring charges?

boots_babe

Hi,

Sorry to hijack, but I have a similar question. I've around £3k per month that gets put onto credit card, and would always be paid back in full.

We were doing some building work on the house last year, and so we had a lot of large payments to make, which meant we moved all our savings temporarily into an offset savings account to offset against our mortgage. This was just far easier and more practical until such time as the building work and big irregular payments out ceased.

So during this time, we've been spending on 0% cards and putting the money into our offset savings account.

However now, the work is finished, so if it would be more profitable to put the 0% card money into a separate instant access savings account instead, then we would like to do so.

Only I can't quite work out what rate of savings I need, in order to make it worth switching away from the mortgage offset, and into a separate savings account.

The mortgage is split into 2 rates. The lower rate of 0.79 + base has nothing offset against it, as we're offsetting against the more expensive debt. The mortgage we offset against is 2.39 + base (so 2.89% currently).

Can anyone help to work this out please? Many thanks.