Could I invest my Lloyds overdraft to a savings acc?

MoneySaverLog

Sharon87 wrote: »

Lots of people get 0% balance transfer cards and stick that money to savings. So it's not uncommon

BugsyBrowne wrote: »

I take it you do know how much interest the OP would earn on a grand with today's rates?

It's called stoozing and quite a few people do this, though has as BugsyBrowne quite rightly says it will affect your internal credit score and show up on your CRA file so could affect future credit applications.

There is obviously a trade off, but rates are really low and you'd be lucky to make £35 a year assuming you pay no tax on a £1,000 in a savings account. Some would say is that really worth it.

callum9999

BugsyBrowne wrote: »

I take it you do know how much interest the OP would earn on a grand with today's rates?

Well I put my £2k overdraft into a savings account and get £60 a year. Not the end of the world if I didn't get it, but £60 is most definitely a worthwhile amount for me (and I'd wager for most students as well).

BugsyBrowne

callum9999 wrote: »

Well I put my £2k overdraft into a savings account and get £60 a year. Not the end of the world if I didn't get it, but £60 is most definitely a worthwhile amount for me (and I'd wager for most students as well).

Everyone's different but earning £60 interest in 2 years would be a complete waste of my time, work out how much you actually will waste in that 2 years which could of went in a money jar and earned you a lot more.
After those 2 years I would guarantee you the money jar would have more then £60 in it.

mathsmaster

I remember doing this as soon as I started my course back in 1992, long before the term stoozing had been invented. The cherry on the cake was the fact that I transferred the full overdraft from my Lloyds current account into a Lloyds savings account. I can still picture the face of the lady in the branch that did it for me (still waiting for the internet to come along).
One of the many advantages of studying for a maths degree has been making money out of banks and I'm still doing it on my +0.17% lifetime mortgage tracker - go for it!

opinions4u

mathsmaster wrote: »

One of the many advantages of studying for a maths degree has been making money out of banks and I'm still doing it on my +0.17% lifetime mortgage tracker - go for it!

You really think it takes studying for a maths degree to work out that 3% is higher than 0.67%?

CLAPTON

opinions4u wrote: »

You really think it takes studying for a maths degree to work out that 3% is higher than 0.67%?

the difference between maths and the ability to do arthmetic is that mathematians know what to calculate.

BugsyBrowne

Think your all losing the plot asking someone to invest £1000 of an overdraft so that they can make £35 absolutely ridiculous and surprised members are actually telling the OP to go ahead with this nonsense.

callum9999

BugsyBrowne wrote: »

Everyone's different but earning £60 interest in 2 years would be a complete waste of my time, work out how much you actually will waste in that 2 years which could of went in a money jar and earned you a lot more.
After those 2 years I would guarantee you the money jar would have more then £60 in it.

How on earth does logging into internet banking, clicking "make payment" and then typing in the account details take up any significant amount of time whatsoever? How do you waste a single penny doing that? You are making very little sense...

BugsyBrowne wrote: »

Think your all losing the plot asking someone to invest £1000 of an overdraft so that they can make £35 absolutely ridiculous and surprised members are actually telling the OP to go ahead with this nonsense.

Why is it ridiculous?

rs65

callum9999 wrote: »

Well I put my £2k overdraft into a savings account and get £60 a year. Not the end of the world if I didn't get it, but £60 is most definitely a worthwhile amount for me (and I'd wager for most students as well).

Put £1k of it into a Virgin ISA through Quidco for 6 months and you'll get £50 - your investment may go down though.

callum9999

rs65 wrote: »

Put £1k of it into a Virgin ISA through Quidco for 6 months and you'll get £50 - your investment may go down though.

I'd rather not make investments with it. I chose an instant access savings account that pays out monthly as I may need the money at some point (or the bank could demand it back) but thanks for the advice anyway.