Does this look/sound like a good idea?

I've been accepted for both the Virgin credit card and MBNA credit card [despite both being the same company] which offer cash transfers within the first 60 days of opening the account, £3600 and £3000 respectively for 20 months at 0%.
The Virgin card has a 4% fee for obtaining the cash, the MBNA has a special rate of 2.5%.
I therefore potentially have the oportunity to obtain £6300 which I could put into a high % savings account, ISA, but premium bonds etc.
£3600 + 4% = £3744
£3000 + 2% = £3060
So the total interest would be £204 [not including the monthly 1% minimum payment].
Would I realistically earn this back in any kind of savings/ISA account in the 20 months, or would it simply be a waste of time and money?
Many thanks for any help and advice.


  • I'd go for it but it depends a lot on how highly you value your time and effort. You should be able to make a profit but not a huge amount.

    Welcome to the world of stoozing. :)
    Are you for real? - Glass Half Empty??
  • Garbs_2
    Garbs_2 Posts: 12 Forumite
    I don't mind putting the time and effort in but with the handling fee and minimum monthly payments plus the percentage charge when its time to do a 0% balance transfer, am I going to make anything that would be worth this time and effort?
  • zerog
    zerog Posts: 2,478 Forumite
    To earn £204 on £6300 over 20 months, the interest rate needs to be just under 2% net.
  • Garbs_2
    Garbs_2 Posts: 12 Forumite
    Hey Zerog thanks for that.
    There are some ISA's with 3.6% plus a bonus so I might make something out of it....
  • mgarl10024
    mgarl10024 Posts: 643 Forumite
    First Anniversary Combo Breaker
    Do factor in the monthly payments though as they can take a serious chunk (even at 1%).

    Have you seen It'll work it all out for you. :)
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