Barclays BT Cashback Offer

ontheup_3

Rang BC today and asked again about the cashback and was informed its only on certain cards but they are looking at offering it on excisting accounts too ...

Anyway while on the phone they also informed me of a new offer on BT's , No BT fee plus 5% cash back on the amount transfered with a life of balance of 6.9%

So if you BT £2000 you'll get £100 cashback :j

Then just either pay the card off or pay minimum and keep the money in a high interest account (halifax 6.17%) so in thoery it will cost you next to nothing and a few quid for you :T

Milarky

ontheup wrote: »

Anyway while on the phone they also informed me of a new offer on BT's , No BT fee plus 5% cash back on the amount transfered with a life of balance of 6.9%

That actually sounds too good to be true...but you've got my attention!

ontheup_3

Well i worked out that on £2000 BT gives you £100 cash also with my halifax account i make about £10 a month in interest which will just about cover any charges from the CC . i might be wrong and it might be better if someone with a head for working out figures had a go at seeing if it adds up , then also dont forget the £100 cash lol

The invite was put on my account on the 21st but is a new thing , she said i'll be getting a letter over the next week or so explaining it all

Ive got time before i try it as i have 0% on my halifax card so im busy running that up and keeping the money in a high intrest account then ill BT:T

ontheup_3

Anyone want to have a go at working it out ??

Milarky

You shouldn't make money in the long run - only in the short run - because the rate on the debt (0.561% per month) is higher than the rate on the savings (assumed 0.5% gross, and you're NOT a taxpayer)

However, something strange happens. The net position gradually gets worse and worse (although still substantially positive) but then start up reverse and improve again. This seems to be because the compound interest on the savings - although at a lower rate - is on a 5% greater starting balance - £2100 compared to £2000

In short, you will make money on this offer but only because of the 5% gain at the start. The ongoing savings rates merely cushions the effect of the 6.9%. For that reason (the 5% and not the life of balance rate itself) this is worth doing.

The best thing to do (unless you can definitely earn more than 6.9% net) is to pay off the life of balance amount as quickly as you can therefore.