Barclaycard 0% to current account transfer

mp3duck

Hi,

New to snoozing, so please bear with me:

I have an open offer to transfer to my current account at 0% for a a 1.6% fee. The offer runs until January 1st 2016.

My balance is actually in credit, due to a refund, so I'd transfer my entire credit limit of around £6000, therefore meaning a transfer fee of £96. I'd pay this part of in the first statement to avoid any further interest, and then pay the minimum payment until the deal ends.

Question is really what's the best place to put the money for it's 8 month snooze (or even if I should do it at all)? I have a Santander 123 current account that isn't yet on it's maximum balance, so I could earn 3% on the balance, but I'm pretty sure that after tax deductions, I won't actually make any money, and might actually be worse off..

Please correct my sums if wrong, but I think the money would earn approx £15 per month, for 8 months, so £118 before any tax deductions.
I worked on 0.2466 per month using the APR conversion calculator here -> http://www.stoozing.com/calculator/apr-rate-converter.php

Furthermore, using the Snooze Calculator here -> http://www.stoozing.com/calculator/stoozcalc.php it shows a loss of £25 when higher tax rate is picked..

So, is it just a waste of time, or is the point to then just apply for another credit card at end of offer, and transfer the balance to that card them?

I'm aware of slightly higher APR current accounts with Lloyds (4% between 4k-5k), and TSB (5% upto 2k), but even those APR rates don't seem to result in any profit.

Thank you,
Danny

JimmyTheWig

Good questions. Welcome to stoozing.
Firstly, just to be pedantic, note the name - Stooz not Snooze.

Ok, I agree with your sums. As a rough calculation, 3.0% APR for 8 months is 2.0% (3.0 x 8 / 12 = 2.0).
After basic rate tax that's 1.6% so you'd break even.
As you say, after higher rate tax you'd lose money.


So what are your options?
1. Apply for a new card that allows money transfers with a longer 0% deal than Barclaycard are offering you.
2. Apply for a new card with 0% on purchases and slow Stooz.
3. Use the Barclaycard offer as a reasonably cheap way of building up a credit card balance with a view, as you suggest, to getting a balance transfer in 8 months time.

MallyGirl

It is difficult to make much through stoozing at today's interest rates. It works a bit better for me as I have an offset mortgage so any money I get in there 'earns' the equivalent of my mortgage rate, so 3.9% net of tax (it is interest I would have paid rather than interest earned so there is no tax to pay). You could treat it as a learning experience - you won't make much but you can get the hang of it and then move into 0% BTs at the end of the offer.

mp3duck

thanks for both replies.
I've not yet made the transfer, as I wasn't 100% sure it was worth it.
I am currently "slow stoozing" (apologies for typo before,:rotfl:), with my Santander 123 Credit Card, with all spending going onto that card at 0% for 23 months (although, I can see me hitting the credit limit long before the 23 months are up!)..

I might then not do this transfer, and hope for either a longer transfer to current account offer next month, or a lower fee (or both, but unlikely I guess).

I think I have a pretty good chance of getting most credit cards I'd want to apply for (no debt apart from stoozed credit card balance on 123 card, and decent Salary), but you really only know until you actually apply..

mp3duck

JimmyTheWig wrote: »

Good questions. Welcome to stoozing.
Firstly, just to be pedantic, note the name - Stooz not Snooze.

Ok, I agree with your sums. As a rough calculation, 3.0% APR for 8 months is 2.0% (3.0 x 8 / 12 = 2.0).
After basic rate tax that's 1.6% so you'd break even.
As you say, after higher rate tax you'd lose money.


So what are your options?
1. Apply for a new card that allows money transfers with a longer 0% deal than Barclaycard are offering you.
2. Apply for a new card with 0% on purchases and slow Stooz.
3. Use the Barclaycard offer as a reasonably cheap way of building up a credit card balance with a view, as you suggest, to getting a balance transfer in 8 months time.

Are there any good longer term money transfer cards on the market currently?

Coveredinbees!!!!

I've got my entire mortgage on 0% cards now, saving me a packet in interest.

JimmyTheWig

mp3duck wrote: »

Are there any good longer term money transfer cards on the market currently?

Have a look at http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs.
MBNA 24 months for 1.94% fee.
3.0% APR (Santander 123) for 24 months is around 6.0%. Even at higher rate tax that's 3.6%, so beats that 1.94% fee.

mp3duck

JimmyTheWig wrote: »

Have a look at http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs.
MBNA 24 months for 1.94% fee.
3.0% APR (Santander 123) for 24 months is around 6.0%. Even at higher rate tax that's 3.6%, so beats that 1.94% fee.

Doing the MBNA eligibility checker, they were unable to offer me my first choice card (i.e. the one above), but offered one with a higher fee, and only for 12 months, so therefore not an option I'd take..

I think I'll wait a month, and try their checker again, as it might be because my credit file is still showing a Barclaycard balance (last time I checked before the trials ran out), when it was paid off over a month ago (they seem slow to update it seems!)

MallyGirl

Coveredinbees!!!! wrote: »

I've got my entire mortgage on 0% cards now, saving me a packet in interest.

That would be a nice position to be in - O/S mortgage is more than twice my gross salary though so I need to pay off a bit more first And OH needs to get a job after being made redundant at Christmas

mp3duck

https://forums.moneysavingexpert.com/discussion/5178543

Might be able to do this without any fees, and affectively for 23 months.. (with the 123 credit card), as it has 0% without fees..

I also messaged them and the confirmed the same thing.. I happened to be in credit at the time too, due to a refund onto the card..

Bit worried it might all go wrong, and I find I am breaking one of their terms.. Guess it's something I shouldn't look to do more than once

JimmyTheWig

I've replied on the other thread.

It's not a risk-free strategy, but it should work.