Balance Transfer Card

Curr946

Hey guys, just been accepted for a virgin balance transfer card and the limit is much more that I require.

I see that other have transferred the funds to thier bank and earned some free money by way of interest.

Would, but with a fee of 3% is this really worth it? Where can one stash the cash with instant access for and earn more that 3%?

:rotfl: or am I missing something

YorkshireBoy

The money transfer fee is 4%, which means a basic rate tax payer will need a guaranteed return of 3.3% AER gross over the entire 20 months just to break even...

http://www.stoozing.com/calc.php

opinions4u

The AA Access ISA pays 3.05%.

On £5,000 that would earn you around £241 for 19 months (allowing for the movement of money either side). This assumes you can get a renewal rate of 3.05% after 12 months, as that rate includes a bonus.

So it doesn't give you the guarantee you need.

Looks to me like not being worth the effort.

If you have a mortgage at a higher rate it could be worth paying a lump sum off that and saving up enough money to repay the credit card in full before the end of the 20 months. But unfortunately the glory days of fee free stoozing are well behind us.

YorkshireBoy

opinions4u wrote: »

But unfortunately the glory days of fee free stoozing are well behind us.

Indeed they are.

I've recently repaid £19K to MBNA, following a 12 month 0% repeat deal (2% SBT fee on my Virgin Atlantic card ). This has saved me just under £300 on my 3.75% offset mortgage, but in the "glory days" of the Egg 6.3% savings account the same deal would have made me over £500.

All of which is a long way short of the £240 a month net interest I was getting at my £70K+ stoozing 'peak' during the fee-free years.

Curr946

Thanks guys.

Having done the math, and searching the net, I've decided its not really wroth the effort :rotfl:

mhuk01

i've just opened a credit card account with virgin, 2700 limit transferred into bank account.

although i will only really break even over the 20 months, i still think its worth doing if you think even more long term.. ie keep transferring the debt onto a new 0% card and after two years you'll start getting a bit of money each year (the interest) for free.

YorkshireBoy

mhuk01 wrote: »

i've just opened a credit card account with virgin, 2700 limit transferred into bank account.

although i will only really break even over the 20 months, i still think its worth doing if you think even more long term.. ie keep transferring the debt onto a new 0% card and after two years you'll start getting a bit of money each year (the interest) for free.

I don't follow your logic.

Each and every time you shift the dwindling balance you'll pay a BT fee on that dwindling balance won't you?

If you'll only just break even over the 20 months you'll always only just break even won't you?...unless interest rates rise and/or BT fees reduce...and neither look like possibilities any time soon in my opinion.

mrs_T

YorkshireBoy wrote: »

I don't follow your logic.

Each and every time you shift the dwindling balance you'll pay a BT fee on that dwindling balance won't you?

If you'll only just break even over the 20 months you'll always only just break even won't you?...unless interest rates rise and/or BT fees reduce...and neither look like possibilities any time soon in my opinion.

Agreed, which is why after 3 years of stoozing a credit card debt which was originally for a car I've decided not to transfer it again and when my virgin 0% deal ends in October to pay it off from the isa it's been sitting in. Balance transfer fees wipe out any profit.

thenudeone

I's just possible to make a small gain if the right circumstances and timing allow. For example - if could have taken advantage of the National Counties 45 day notice ISA account paying 3.7%. But it's nothing like the good old days of getting a 12 month balance transfer at 3% and putting it in the offset mortgage account at 6-7%!

kasif

Hi friends,
I know that to transfer the balance from one account to another account , it has some suitable steps. In the present time, the banks gives the new policy to the client , known as the 'NetBanking' . Net Banking is a process in which the client can transfer the balance of one account to the another account.
I hope to you to present this type of post in the future also.
Great share, great post, thanking you .