Santander 123 Current + Credit card question

Pmarmalade

I'm benefiting from the 3% interest on the 123 Current Account and I am stoozing with the 123 credit card, but I'm about to max the latter out.

Am I better off paying back £500 or so each month so I can keep earning cashback on shopping and petrol (1% and 3% respectively), or am I better just keeping the card maxed out and the £500 earning the 3% in the current account? The latter initially seems higher, but then it's only for a month (1/12) vs 1-3% on the full amount of the credit card cashback?

N.B. Paying back the card won't take me below the £3k balance required to keep the 3% interest rate.

knack92

You earn £1.25 per month on before tax in the current account. I expect the CC cashback will be more than that amount so it's definitely worthwhile using the CC.

Why not do several payments over the month to earn max interest rather than one 500 payment.

missile

I assume you are still on 0% rate? If not, pay your credit card off in full by DD every month - even if it means you will go below the £3K minimum balance.


Representative Example
0% p.a. on card purchases for 23 months followed by 12.7% p.a. variable on card purchases. This is equivalent to 16.5% APR representative variable based on an assumed credit limit of £1200. Annual fee: £24.


You could earn 3% cash back on a combined spend of up to £300 and up to 2% on purchases. Your cunning plan could generate up to £9 + £4 per month tax free on your £500 credit card spend.

Vortigern

Pmarmalade wrote: »

I'm benefiting from the 3% interest on the 123 Current Account and I am stoozing with the 123 credit card, but I'm about to max the latter out.

You could transfer your balance to a Tesco credit card, and continue to spend on the S123 card.

You must ensure that you have the money to pay back the stooze at the end of the interest free period.

Tesco currently has a no fee 12 months 0% card - make sure you apply for the right card. They have other cards which might not meet your needs.

http://www.tescobank.com/credit-cards/low-fee/index.html

YorkshireBoy

Vortigern wrote: »

You could transfer your balance to a Tesco credit card, and continue to spend on the S123 card.

...or the Halifax 13 month fee-free BT card, and get an extra month.

http://www.halifax.co.uk/creditcards/balance-transfer-purchase/no-balance-transfer-fee/