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

The_Enforcer

Received card over the weekend with a limit of £3k, in other words £2950 of TCs (allowing for 1% fee and minimum £50 denominations). So, I'm now back to my original question.

COOLTRIKERCHICK

I had a 4k limit, so i have ordered and recieved my first batch of TC ( free delivery)

so just about to order another £1480 worth ( or £1450 if its in £50's)

I think i am going to keep them in one of my lloyds tsb accounts...as this is 4% with easy access...



edit its going down to £%

here is the new interest rates for the vantage accounts.. i am a bit confused now with the gross and net %age.. so if i was looking at Isa's which interest rate should i look at the gross or net? to compare the vantage accounts with Isa's

YorkshireBoy

The_Enforcer wrote: »

Received card over the weekend with a limit of £3k, in other words £2950 of TCs (allowing for 1% fee and minimum £50 denominations). So, I'm now back to my original question.

The first step in stoozing (see the guide on the stoozing website) is to open the savings account. Then start applying for stoozing cards.

Probably best to look on the savings account board for the best home for the stooz pot.

YorkshireBoy

COOLTRIKERCHICK wrote: »

i am a bit confused now with the gross and net %age.. so if i was looking at Isa's which interest rate should i look at the gross or net? to compare the vantage accounts with Isa's

You need to look at what you get to keep for yourself!

With an ISA you get to keep all the interest.

With a non-ISA product, eg your Vantage account, as a tax payer you have to pay 20% (and more later if you're a higher rate tax payer) tax on the interest.

So you compare the net rate on an ordinary account with the ISA rate.

COOLTRIKERCHICK

YorkshireBoy wrote: »

You need to look at what you get to keep for yourself!

With an ISA you get to keep all the interest.

With a non-ISA product, eg your Vantage account, as a tax payer you have to pay 20% (and more later if you're a higher rate tax payer) tax on the interest.

So you compare the net rate on an ordinary account with the ISA rate.

thanks Yorkshireboy...:T so now that they have changed the interest rates on the vantage accounts they are not that good now....

will have a look at the Isa's now

edit....... Yorkshireboy.....can i pick your brains again please.....

I have just had a look on the Hlaifax site ( i have an account with them)

does this look good for my m&s stooze money?

and am i correct in thinking i can bung £5340. in there straight away, and leave it until next april?: how much interest would i get next april?

Sorry about all the questions, but up until now i havent look around at interest rates, as i was happy with the old vantage account

YorkshireBoy

COOLTRIKERCHICK wrote: »

am i correct in thinking i can bung £5340. in there straight away, and leave it until next april?: how much interest would i get next april?

I assume you mean the ISA Direct Reward? If you're a qualifying current account holder it pays 3.2% AER (if not, 3.0% AER) so a decent rate.

£5340 x 3.2% would be £171 for a full year, so around £142 next April (maybe a little less as I can't remember if the 0.2% bonus is paid in April or on the anniversary of account opening...either way, you've borrowed at 1% so, and ignoring the effect of the minimum payments you'll make, it's all profit!).

COOLTRIKERCHICK

YorkshireBoy wrote: »

I assume you mean the ISA Direct Reward? If you're a qualifying current account holder it pays 3.2% AER (if not, 3.0% AER) so a decent rate.

£5340 x 3.2% would be £171 for a full year, so around £142 next April (maybe a little less as I can't remember if the 0.2% bonus is paid in April or on the anniversary of account opening...either way, you've borrowed at 1% so, and ignoring the effect of the minimum payments you'll make, it's all profit!).

thanks:T

Yes i have the account that pays the £5 a month if you pay in 1k,

the min repayment for the CC is coming out of a diff account..

so even though the tax year ends in april, if i leave the money in for the full calendar year, this is when the full bonus will be paid?

mrs_T

COOLTRIKERCHICK wrote: »

thanks Yorkshireboy...:T so now that they have changed the interest rates on the vantage accounts they are not that good now....

will have a look at the Isa's now

edit....... Yorkshireboy.....can i pick your brains again please.....

I have just had a look on the Hlaifax site ( i have an account with them)

does this look good for my m&s stooze money?

and am i correct in thinking i can bung £5340. in there straight away, and leave it until next april?: how much interest would i get next april?

Sorry about all the questions, but up until now i havent look around at interest rates, as i was happy with the old vantage account

If you haven't already been offered it you can phone ltsb and ask for an incentive saver account to use after June 27th (when vantage rates change). It pays 3% on the total of your balance from £1 to £50k. Only worth it if you've used up your ISA allowance though.

The_Enforcer

YorkshireBoy wrote: »

The first step in stoozing (see the guide on the stoozing website) is to open the savings account. Then start applying for stoozing cards.

Probably best to look on the savings account board for the best home for the stooz pot.

Agreed - done that already - I have opened the Halifax Websaver Reward (2.8%+0.2%gross).

Got 3k limit, so collected £2970 in TCs at the weekend, will attempt to pay these into Halifax Reward Current Account and then transfer the funds across to the Web Saver.

I shall then drip feed £300 a month from this into my FD current account, to cover the funding of a FD Regular Saver (8%gross). I realise I will need an extra £600 on my credit limit or will have to top up the FDRS from other sources in order to fully subscribe to it.

I've calculated that the returns from the Saver/Regular Saver combo are slightly better then those from the Santander Flexible ISA (3.3%gross) and leaves the latter clear for any other savings I might be able to set aside this year. Plus, the usual longer-term benefit of having compounded tax-free interest in an ISA would not apply due to the need to withdraw most of the funds in order to pay off the M&S card.

I figure that the interest (and the equivalent of the minimum payments) left over in the matured FD Regular Saver and Web Saver could then be shipped into a future ISA.

Alibear

Hi, hope you don't mind me tagging onto this thread...

I've also just been accepted for this card (after originally being rejected - it pays to call and ask why!). I have a Santander current account which currently pays 5% AER (up to £2500) and an ISA (3.5% loyalty). I've planned to use the credit card for everyday spending, so I can keep as much of my salary as poss in my account. Then any amount over £2500 I can move across to my ISA. This is also factoring in the monthly savings I already move to my ISA on pay day. Does this sound a good idea? Any advice appreciated...