M&S 0% 15 months - Where's the best place to put the stoozed funds?

Linclass_2

The_Enforcer wrote: »

Hi,

would use it to buy sterling travellers cheques to then convert into cash. I

TE

I have now recieved my M&S card it would take me 3-4 months for me to reach the credit limit. However I noted your comment, is it possible to by sterling travellers cheques with no fees incurred?

It would mean I 'use' my limit quicker and therefore maximise interest earned.

YorkshireBoy

Linclass wrote: »

I have now recieved my M&S card it would take me 3-4 months for me to reach the credit limit. However I noted your comment, is it possible to by sterling travellers cheques with no fees incurred?

It would mean I 'use' my limit quicker and therefore maximise interest earned.

There's a 1% fee which, unless you have another slow-stooz card to use instead, would mean you'd only benefit for 3-4 months.

1% for such a short duration equates to an APR of 3-4%. Can you beat that in a savings vehicle? If not, don't bother with the TCs.

Linclass_2

I have just done a bit of googling and found that buying currency with your M&S credit card would be treated as purchase not a cash advance, so covered under the 0% interest.

Being foreign currency attracts no fees however a 1% fee is charged for Sterling. As I plan to put the money into 3.1% ISA it would reduce the money I earned by a 1/3 so maybe not right for me.

The_Enforcer

Yes, because under their terms and conditions, M&S travellers cheques count as purchases and fall under the 0% rule (other travellers cheques count as a cash advance and incur a high rate of interest).

M&S Money charge 1% for sterling travellers cheques and you will need to have a current account that allows them to be paid in free of charge.

Alternatively, there is no 1% charge for dollar or euro travellers cheques, but you would need a dollar or euro current account and then be able to transfer it back to a sterling account, which is more complicated and could incur more commission/exchange rate deductions.

Check the links I posted on the thread and also those by Yorkshireboy for more details.

The_Enforcer

Typical, posts crossed.

It's not going to be particularly profitable for me, whether I choose the ISA or RS route or a combination of the two, but given that I can't see myself funding an ISA/RS through any other source in 11/12 taking advantage of this card loophole is a no-brainer.

Apathy

COOLTRIKERCHICK wrote: »

I have applied and got passed for an M&S CC..

I have 3 lloyds tsb accounts, and even though they are reducing their rates in june this where i think i might put the money first of all,

then open ( if accepted) a first direct account and transfer one of my lloyds account:D, then take advantage of their 8% monthly savers account..( they are offering £100 if you transfer your bank account to them;))

so basically put the travellers cheques into lloyds account... then do a DD to First Direct account for £1500... and a DD of £350 into the savers account... then Do a reverse DD back to lloyds tsb account of £1150 ..

and the same every month....

this will satisfy the conditions of both lloyds and First direct accounts with the min amount to be depssited each month...

then after the 12 months of the Savers account.... close the accounts and put money back into lloyds, or any other better easy access interst account, and then pay off in full M&S credit card, and close it....

Just wondering for reference purposes. I have 2 halifax reward accounts, although 1 is joint account, do you mean 2 single rewards or is it just like me? I opened them last year nov/dec time. Also, what's to stop me opening 1 single and 1 joint account in rbos? thanks.

COOLTRIKERCHICK

Apathy wrote: »

Just wondering for reference purposes. I have 2 halifax reward accounts, although 1 is joint account, do you mean 2 single rewards or is it just like me? I opened them last year nov/dec time. Also, what's to stop me opening 1 single and 1 joint account in rbos? thanks.

Yes all my accounts are singles not joint accounts...

I have been meaning to open accounts in hubby's name, but to be honest i have just havent got round to it all...

I supose i didnt want to bamboozzle myself.... i mean complicate things... with juggling other people's accounts too....lol..

The_Enforcer

I have read on a thread in the banking section of the forum, that officially you are only supposed to have a maximum of 2 reward accounts per person (1 single, 1 joint). It appears that they are not enforcing this rule actively for those that already have exceeded these reward account limits, but that they system would now block any additional applications. I was advised on the forum that the HBOS system would probably detect my Halifax reward account if I applied for a Bank of Scotland reward account. Still, my household could potentially earn £15/month from this which is very good in the current climate.

CreditCruncher

Update: Barclays accept £ Sterling travelers cheques fee/commission free.

The_Enforcer

I saw on another thread that HSBC charge 1.5%.