Making 8% tax free from Atlantic

GandalfTheTight

Atlantic gives one month’s payment back every year.

Let’s say your monthly bill is 100.00 per month

You phone them up and say you are worried that you won’tcover your bill and want to increase your monthly direct debit to 200.00.

So after 12 months they credit you with £200.00.

You ask for a credit or move supplier


So on your 1,200.00 you have made 100.00

So you make more than 8% tax free

What is wrong with the maths?

GTT

macman

Well, the fact that you've lost all the interest on the £1,200 you would otherwise have had sitting in a savings account for a start.

Cardew

GandalfTheTight wrote: »

So you make more than 8% tax free

What is wrong with the maths?

GTT

The 8% would only apply if you paid them the additional £1,200(12 x £100 extra) at the beginning of the year.

You will be paying them £100 each month, so your average surplus balance over the year will be only £600 so your return will be 16.7%:D

GandalfTheTight

Cardew wrote: »

The 8% would only apply if you paid them the additional £1,200(12 x £100 extra) at the beginning of the year.

You will be paying them £100 each month, so your average surplus balance over the year will be only £600 so your return will be 16.7%:D

Even Better!
:T

GandalfTheTight

macman wrote: »

Well, the fact that you've lost all the interest on the £1,200 you would otherwise have had sitting in a savings account for a start.

No - you would be getting < 1% in a saving account @ 100.00 per month.

macman

GandalfTheTight wrote: »

No - you would be getting < 1% in a saving account @ 100.00 per month.

You obviously haven't read the MSE guide to Savings on the main board then...more like 3%.

GandalfTheTight

macman wrote: »

You obviously haven't read the MSE guide to Savings on the main board then...more like 3%.

I have and an account paying 3% per year will pay you a max of 1.6% (after tax) paying in 100.00 per month - so 16% - is much better!

flyingjock1

why would they pay you back 200 in the 13th mth. to get that kind of refund you would have to pay in say 200 for 12 mths or any combination thereof so that at the end of the 12 mth period, the average dd paid per mth averages out at 200.

Cardew

flyingjock1 wrote: »

why would they pay you back 200 in the 13th mth. to get that kind of refund you would have to pay in say 200 for 12 mths or any combination thereof so that at the end of the 12 mth period, the average dd paid per mth averages out at 200.

That is what the OP is suggesting i.e. pay them £200 a month for 12 months.

He will have paid in £1,200 more than his annual bill and will be £1,200 in credit and will get a 'cashback' of £200

As this is all done by a computer, unless they have have a safeguard against this type of [STRIKE]scam[/STRIKE] 'scheme' it probably won't be picked up.

jalexa

Cardew wrote: »

As this is all done by a computer, unless they have have a safeguard against this type of [STRIKE]scam[/STRIKE] 'scheme' it probably won't be picked up.

The Atlantic website currently doesn't describe the "month 13" payment discount. It's possible the scheme has now been replaced by 6% running direct debit discount.

GandalfTheTight

jalexa wrote: »

The Atlantic website currently doesn't describe the "month 13" payment discount. It's possible the scheme has now been replaced by 6% running direct debit discount.

Well that scuppered my cunning plan!



I always thought it was a silly way to give a discount as itdoesn’t get included on the comparison sites. This way they do.

GTT