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Mastercard and Premium Bonds.

My brilliant idea which went wrong was to buy £5000 worth of premium bonds on a Mastercard which has 0% on purchases until November. Problem was NSI wouldn't accept the card because it is a credit card.

Does anyone know a technique I can use to convert that £5000 to cash so I can purchase the premium bonds and have an interest free bet until November (well slightly before when I cash the bonds in to pay off the credit card)?

Comments

  • dougz_2
    dougz_2 Posts: 523 Forumite
    Part of the Furniture Combo Breaker
    Doesn't sound attractive to me. Your so called "free bet" is only worth 1% of your £5k. So thats a value of £50 but at a cost of about £80 in lost interest.
  • I know what you mean, dougz but I could win the big one and unlike the horses and the lottery I get my stake back.
  • dunstonh
    dunstonh Posts: 120,351 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Premium bonds are dire and have a prize rate that equates to around 1.5%p.a. Statistically what you propose to do will cost you money as the transaction will be classed as a cash advance on the credit card the cash advance rate you pay will be higher than the likely prize rate.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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