Consumerist wrote: »
The £10,000 investment has still only earned 3.36% AER (£834 net interest for basic-rate taxpayers) compared with 4.3% AER (£1,077 net after 3 years) available elsewhere. So your £834 up-front interest would need to earn £243 net (i.e. £1,077 - £834) in three years to break even. I make that around 11.1% AER (gross) needed on the £834 to achieve that. I don't think it is very likely to consistently get that rate, or anything close, over the next three years without a considerably greater risk attached.
Tax considerations aside, I would say this offer is more of a gimmick than anything of substance. But the uninformed will be taken in, so it's worth the bank's while to push it.
Anyone care to check my numbers?
hermante wrote: »
so you'll need to borrow some money for 2 weeks, or miss out.
If you plan to get a place via 'clearing'
Lower your band & save £1,000s
Past-best-before health food etc