Lloyds money transfer offer

bikelesschick

I received a letter from Lloyds credit card saying I can transfer some cash from my credit card to my account at 0% interest for some months (can't remember how many of the top of my head).

I'm thinking of withdrawing that cash from the credit card and sticking into a couple of TSB accounts whilst making sure I don't use the credit card until it's paid off (whenever the 0% interest ends) and setting up a DD for the minimum payments every month.

Is this a good or bad idea? I can't find anything on the site or forum about this offer so I'm wondering if it's worth at all. Thanks.

jonesMUFCforever

How much is the transfer fee?
What is the Net rate of interest you will gain from the TSB accounts?

bikelesschick

I don't think there's a transfer fee. 5% interest from each TSB account as I'm not working at the moment.

To be honest, it just seems too good to be true hence why I'm feeling very aprehensive about doing this.

bikelesschick

Sorry, I've just re-read the letter. It states 'transfer money from your credit card to your current account before 17 March 2015 and we won't charge you interest on the money you transfer for 12 months (3% fee applies)'. There's a minimum of £100 transfer.

This is probably going to sound daft but I'm terrible at calculating interest.

So if I transfer £1500, I'll have to pay 3% which is £45 (which I assume will be interest free as well?) but how much would I earn per month? Surely it's not 5% of £1500 which would give me £75! Lol

YorkshireBoy

You "can't remember" how many months 0%, and "don't think" there's a fee payable, yet you're "wondering" if its worth it...and presumably asking others if they think it is?


I'd suggest getting all the information together, and checking it so you KNOW what it is, and then running it through a stoozing profit calculator such as this one...


http://stoozing.com/calculator/stoozcalc.php

YorkshireBoy

bikelesschick wrote: »

So if I transfer £1500, I'll have to pay 3% which is £45 (which I assume will be interest free as well?) but how much would I earn per month? Surely it's not 5% of £1500 which would give me £75! Lol

You'd need to check your personal T&Cs re interest on the fee. For example, the draft T&Cs on their website say...

"If there is a promotional Balance Transfer offer available, then interest on the Balance Transfer charge payable under condition 7.8 will also be charged at the promotional rate."

Do yours say the same?

As to your profit, then it'll be £25.13 according to the above calculator. Worth it?


EDIT: As to your interest amount query, the account pays 5% AER. The 'A' in AER stands for annual.

msallen

... and don't forget that the interest you earn from the TSB account will be net of tax - the 5% is gross.

The truth is bikelesschick that there is a very very small amount to be made, but a single mistake could wipe out any profit and lead to a loss. Speaking frankly, your opening comments on this don't fill me with confidence that you will avoid any mistakes.

PeacefulWaters

msallen wrote: »

... and don't forget that the interest you earn from the TSB account will be net of tax - the 5% is gross.

Non-taxpayer could sign an R85.

The truth is bikelesschick that there is a very very small amount to be made, but a single mistake could wipe out any profit and lead to a loss. Speaking frankly, your opening comments on this don't fill me with confidence that you will avoid any mistakes.

This is very true. But the thinking is right. Asking questions and reading up to understand the pitfalls is a good idea.

MABLE

bikelesschick wrote: »

I received a letter from Lloyds credit card saying I can transfer some cash from my credit card to my account at 0% interest for some months (can't remember how many of the top of my head).

I'm thinking of withdrawing that cash from the credit card and sticking into a couple of TSB accounts whilst making sure I don't use the credit card until it's paid off (whenever the 0% interest ends) and setting up a DD for the minimum payments every month.

Is this a good or bad idea? I can't find anything on the site or forum about this offer so I'm wondering if it's worth at all. Thanks.

I got the same offer. Also if you read carefully they want to know what the money is to be used for. Saying I want it to put into a TSB account
may not go down too well. Besides you would not make any profit.

jonesMUFCforever

I agree, that if you put down investing or gambling they may refuse the transfer.

MABLE

jonesMUFCforever wrote: »

I agree, that if you put down investing or gambling they may refuse the transfer.

I see you get the idea!