stoozing with 123 current account

lowmiles

Hi stoozers, I have been thinking of moving to this account anyway, and I have been looking into stoozing recently and 0% credit cards. If you have over £3000 in your current account you get 3% interest with this account .So if you used this account you'd get more interest than most ISA's and not have to have the pain of having to move equivalent money from a current account to a saving account. Plus you get cash back on bills and things.Does anyone do this or am I missing an important aspect of stoozing?

zerog

lowmiles wrote: »

Hi stoozers, I have been thinking of moving to this account anyway, and I have been looking into stoozing recently and 0% credit cards. If you have over £3000 in your current account you get 3% interest with this account .So if you used this account you'd get more interest than most ISA's and not have to have the pain of having to move equivalent money from a current account to a saving account. Plus you get cash back on bills and things.Does anyone do this or am I missing an important aspect of stoozing?

If you mean spending on a 0% CC and then saving the money in your current account to pay off later, then yes this is simple. Just remember the 123 account has a monthly fee so the interest will be slightly lower than 3%.

If you mean taking money out of your card limit to put into a savings account, then that usually has a large fee which will negate any interest you get.

lowmiles

"If you mean spending on a 0% CC and then saving the money in your current account to pay off later, then yes this is simple. Just remember the 123 account has a monthly fee so the interest will be slightly lower than 3%."

Yeah thanks that is what I meant although, I will get more than the monthly fee from cashback alone, seems easier this way as you i wouldn't have to move money around until I pay off the 0% CC.

MrsCautious

Hi, this is something I'm in the process of setting up but with a cashback card, seemed a good idea to me and touch wood, as you say, quite simple. Good luck. I've set up a direct debit to pay off the balance in full each month. Also I set up the new bank account through topcashback which brought a payment of £55, it has gone down to £40 something now I think.

Wyndham

Don't forget you need to pay the minumum repayments on the credit card.

argomatt

3% in the Santander 123 account is a good rate, but if you are a taxpayer, then an ISA might be better.. the 3% is a gross rate, so once the tax is deducted you will end up with less. In an ISA the rate is a bit lower but you get to keep all of it.

zerog

argomatt wrote: »

3% in the Santander 123 account is a good rate, but if you are a taxpayer, then an ISA might be better.. the 3% is a gross rate, so once the tax is deducted you will end up with less. In an ISA the rate is a bit lower but you get to keep all of it.

...but it needs to come out of the ISA if you ever need some actual cash, and then you can't put it back. Of course if you don't have any other savings anyway, then an ISA may make sense.