Using Sony Credit Card To Fill My ISA!

shitefourbrains

I saw a posting about getting a free MP3 player when you make your first spend on your Sony Credit card. Apparently its worth £45.

I went ahead and got it. When I activated the card they told me I could transfer money into my bank account to pay off overdrafts. Currently its interest free for a year! However there is a 2% handling fee.

So I transfered £3000 to my account, opened a Cash Mini ISA with NS&I (currently 5.55%, variable but 0.55 above base rate until april 2008)

I have to pay the £60 in the first month followed by £5/month minimum payment until the 12 months are up. Then I intend paying it all off in one go.

It cost me £60 to do, but I'll earn £165 in interest. Plus my MP3 player.

I know it's only a profit of £105 and you may think its a lot of hard work (like everyone in my office) but thats a 175% return on investment.

Like I said to them, all in all it's less than an hours work involved in setting this up and I have made £105. We got to work for 10hours a day and I don't earn that!

**Remember**
You don't have to take the money when you activate the card. Make your purchase and pay it off first. That way you won't incur interest charges through the year. & get your MP3 player. Then call them up and take the money after.

I wouldn't reccomend doing this if you don't trust yourself not to dip into your ISA, it could end up costing you more!

tom188

This process is called stoozing.

See the link above and the stoozing subsection of this forum.
Also www.stoozing.com

tee_pee_2

got my sony card has your MP3 player come yet?

shitefourbrains

No haven't got it yet. Is it any good? Or do you realise why its free when you open it up??

oldfella

the monthly repayment of 3-5% of the balance reduces the amount they have lent you over the year, and therefore your gain. Putting the money in an ISA means you are still ahead, but for normal savings paying basic rate tax, it is not attractive any more.

Mike

YorkshireBoy

oldfella wrote:

the monthly repayment of 3-5% of the balance reduces the amount they have lent you over the year, and therefore your gain.

But this card is run by MBNA Mike, which means the minimum payments are £5 a month!!!

Putting the money in an ISA means you are still ahead, but for normal savings paying basic rate tax, it is not attractive any more.

I suppose we all have our standards, but £84 from a taxed savings account for very little work seems OK to me.

sicker

I got a free mp3 player from MBNA 1/2 years ago. It was very good. It was a watch the offer before whitch is still going (the watch that is).

John

oldfella

But this card is run by MBNA Mike, which means the minimum payments are £5 a month!!!

---

Not so - T&Cs as follows ..

By the payment due date shown on your statement each month, you must pay whichever is the least of:
· 2.25% of the balance shown on the statement (but you must pay at least £5); or
· the charges for Payment Protection Cover, plus interest charged on the statement, handling fees and default charges, plus £5; or
· the balance on the statement if this is less than £5.

tom188

No oldfella ive been caught out here as well

By the payment due date shown on your statement each month, you must pay whichever is the least of:
· 2.25% of the balance shown on the statement (but you must pay at least £5); or
· the charges for Payment Protection Cover, plus interest charged on the statement, handling fees and default charges, plus £5; or
· the balance on the statement if this is less than £5.

So in this case the minimum is
· the charges for Payment Protection Cover, plus interest charged on the statement, handling fees and default charges, plus £5;
Interest = 0
Handling fees = £60 for first month then 0
Default charges = 0 hopefully
Plus £5

so you only pay £5.

This makes MBNA unique? amongst credit card providers in the UK.

oldfella

the charges for Payment Protection Cover, plus interest charged on the statement, handling fees and default charges, plus £5; or

---

are you sure this option still applies when you dont pay PPC ?

tom188

Yes £5 minimum payment for MBNA cards still