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Stoozing with MBNA money transfer card

ash82
Posts: 13 Forumite

in Credit cards
Hi,
Just thinking the transfer fee is 1.94% for 0% for 2 years and Santander is paying me 3% a year. Can apply, transfer then earn interest and pay off in two years time. Will make circa 4% on their money.
Is anybody doing this on here? Do MBNA give you a healthy credit limit?
Ash
Just thinking the transfer fee is 1.94% for 0% for 2 years and Santander is paying me 3% a year. Can apply, transfer then earn interest and pay off in two years time. Will make circa 4% on their money.
Is anybody doing this on here? Do MBNA give you a healthy credit limit?
Ash
0
Comments
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Yeah, I pay 20% tax so that's still 3.2% on the money unless I've missed something?0
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Will make circa 4% on their money.Stoozing Profit Prediction
Data entered by the user
Balance to be transferred (pounds)...... 10000
BT card interest rate (%) .............. 0
Introductory period (months) ........... 24
Balance Transfer Fee (%) ............... 1.94
Maximum BT Fee (pounds)................. No Maximum
Min Monthly Payment Type ............... Percentage
Min Monthly Payment Amount (% or pds) .. 1
Savings interest rate (AER %) .......... 3
Tax rate ............................... Basic Rate
Your Results
Balance Transfer Fee paid (pounds)...... 194
Stooz pot balance at end of intro ...... 8358.44
Credit card balance at end of intro .... 8009.2
Gross Profit before tax on interest .... 349.23
Tax on interest to be paid ............. 108.65
Your Profit (pounds).................... 240.59
Created using the Stoozing Calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission.
http://stoozing.com/calculator/stoozcalc.php0 -
But why are you paying a fee in the first place?
MBNA have a card offering fee-free money transfers. It's not 0%, but there are at least 3 other card providers out there who are offering 0% fee-free BTs.
So create a debt on MBNA, repay it with a BT to one of the 3.
Rinse and repeat...twice!
I think you'll agree the outcome now looks much better at 4.35%...Stoozing Profit Prediction
Data entered by the user
Balance to be transferred (pounds)...... 10000
BT card interest rate (%) .............. 0
Introductory period (months) ........... 24
Balance Transfer Fee (%) ............... 0
Maximum BT Fee (pounds)................. No Maximum
Min Monthly Payment Type ............... Percentage
Min Monthly Payment Amount (% or pds) .. 1
Savings interest rate (AER %) .......... 3
Tax rate ............................... Basic Rate
Your Results
Balance Transfer Fee paid (pounds)...... 0
Stooz pot balance at end of intro ...... 8401.27
Credit card balance at end of intro .... 7856.78
Gross Profit before tax on interest .... 544.49
Tax on interest to be paid ............. 108.9
Your Profit (pounds).................... 435.59
Created using the Stoozing Calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission.0 -
Plus of course you have to have £2000+ to get the 3%. So that is £2k tied up not earning interest? May not be a problem if you already have funds in there and the stooze is just a top up. (which for people with smaller amounts could be earning 5% with TSB)£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
!0 -
Its £3K+ for 3% AER.
A very low credit limit would seriously impact profit percentage due to the £25 minimum payment for balances under £2.5K0 -
andyfromotley wrote: »Plus of course you have to have £2000+ to get the 3%. So that is £2k tied up not earning interest? May not be a problem if you already have funds in there and the stooze is just a top up. (which for people with smaller amounts could be earning 5% with TSB)
I'm pretty sure you earn 3% on the whole amount as long as you have over £3,000.0 -
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Hi,
Just thinking the transfer fee is 1.94% for 0% for 2 years and Santander is paying me 3% a year.
Put the money in a TSB classic plus, Nationwide flex direct and Club Lloyds account. That's £4.5k at 5% gross (£2.5k at 5% for 1 year) and £5k at 4% gross. There needs to be various SO's and DD's to be set up. Once they're done just leave the accounts to earn interest.0 -
Hi,
Just thinking the transfer fee is 1.94% for 0% for 2 years and Santander is paying me 3% a year. Can apply, transfer then earn interest and pay off in two years time. Will make circa 4% on their money.
Is anybody doing this on here? Do MBNA give you a healthy credit limit?
Ash
Yes I'm doing this. I reckoned it was just about worth it being as the lowest rate I earn on my savings is 2.5% NETT. I achieve this interest rate through utilising TSB/Club Lloyds/First Direct Regular savers for myself and my wife plus a Coventry Building Society ISA which is only available to longstanding members. MBNA gave me a credit limit just under £10k which I thought was pretty good considering the other cards I've got.0
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