# curious as to how much im actually saving

Posts: 205
Forumite
Hi all,

managed to get my first 0% for 19 months and just curiousas to how much im actually saving while earning 3% interest in the 123 acc not paying off the balance on the CC.

will be spending £600 on a new PC this month, along with my outgoings of £250-300 per month until i max the card out all will be put onto this card

the calculators ive found do not allow me to put these figures in and just allow the balance once and not ongoing. is there a formula on working this out? thanks

• Posts: 2,261
Forumite
19 months of £250-300 a month (Average per month =£275) = £5225 by month 19
Average balance over the course of this period (half of final balance) = 2612.5
Plus £600 initial spend on PC = £3212.50
APR/12 = 3%/12 = 0.25% interest a month
0.25% a month for 19 months = 4.75%

£3212.50 x 4.75% = £152.60 (before tax)

Lots of assumptions
The monthly interest is an approximation that doesn't take into account compounding
That the same amount is paid on the card each month
Doesn't account for payments onto the card. Always pay the minimum payment. This will reduce the balance and so reduce your stoozing pot, reducing your profit.
That from the outset you have more than £3000 in your account so earn 3% APR throughout
Doesn't account for the £24 a year fee
That you continue to earn 3% on the money (123 may change, you may not satisfy monthly requirements)
That your CC has a limit that can sustain 19 months of spending.

After basic rate tax and the fee your £152.60 becomes around £98 over the 19 months.
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