Is this a good Deal?

max2002ad

I have just come off the phone with MBNA. I wanted to see if i could use them before i dump them due to the conran saga.

They are able to offer me the following deal and i am not sure whether to take it or leave it and if i will lose any money.

I plan to put the money in to the icici fixed deposit account at 6.30% for one year ( i will cover the shortage either by switching or by using reserves until the year is up).

The Deal is:
£2300 at 1.9% til Feburary 2008 with a £69 3% balance transfer fee.

Do you think i should go for it ??

YorkshireBoy

max2002ad wrote: »

Do you think i should go for it ??

https://www.whatsthecost.com/stoozing.aspx says you'll make a loss of £33 (assuming you're a basic rate tax-payer).

Think about it...

You're paying 3% to borrow for 6 months - broadly equivalent to 6% for the year.

You'll then (presumably) be paying tax on your savings - meaning a net rate of 5.04%.

To cap it all, you're then paying 1.9% interest on your borrowed sum.

It's never going to 'work' is it?

max2002ad

Thanks for your advice.
I used to dabble a little in the stoozing game before balance transfer fee's etc but this is my first attempt at getting back in to the game.

I will just keep on looking for a suitable vehicle or maybe get them to increase my limit.

YorkshireBoy

max2002ad wrote: »

I will just keep on looking for a suitable vehicle

Offset mortgages are the only really profitable vehicles for 3% short duration deals, and even then probably only for an MBNA £5 (now £25) minimum payment.

or maybe get them to increase my limit.

Since you're dealing in purely percentage terms, that won't help. However, if you can combine a substantial limit increase with a cap* on the BT fee you may see a marked improvement in your returns.

* In your example above, even a capped £35 BT fee would lose you 20p over the 6 months, according to 'whatsthecost'.

max2002ad

Whats the Best Credit Card to do stoozing on in your opinion at the mo?

YorkshireBoy

max2002ad wrote: »

Whats the Best Credit Card to do stoozing on in your opinion at the mo?

What's best for one may not be the best for another.

That said, top of my list (once I've 2 or 3 cards marked as settled) will be Cap One's 1.7% fee deal until May 2008 (if it's still around in 4-6 weeks). If not, I have a Cap One (3% BT fee) 15 month flyer which is valid until the end of September as a fall-back.

I may double up with an HSBC card, but I'll do that in conjunction with a current account application made at my local branch.

Both would be routed through Egg Money for a fee-free SBT.

johnllew

YorkshireBoy wrote: »

www.whatsthecost.com/stoozing.com

Link doesn't appear to work - this one does: http://www.whatsthecost.com/stoozing.aspx

YorkshireBoy

johnllew wrote: »

Link doesn't appear to work

Thanks button doesn't seem to be working so...thanks John, I've corrected the link in my earlier post.