Clarity £5 or 16 months 0% interest

drlabman

I have a Halifax Clarity credit card which gives me £5 a month if I spend £300. Assuming I spend on average £1000 a month on a credit card, would I be better off using a 0% interest card e.g. Tesco Clubcard, and stashing the money in, say, a 3% savings account for the first 16months or using the Clarity. Or a mixture of the two. The maths is far too hard for me. Thanks.

Milarky

£5 is 1.66% provided you limit spending to £300. 3% is only 2.4% net so average balance above about £2500 and the Tesco card makes sense - because you will get to that amount within 4 months from what you say.

[For the avoidance of confusion I am recommending spending just on the Tesco card]

When it gets 'down to the wire' is when there time remaining at Tesco drops to six months or so. At that stage go back to Halifax for the first £300 every month. And stop spending at Tesco altogether when time remaining drops to 2 months.

drlabman

Cheers for that.