Windows interest free card or not?

Bartown22

Hi just had a quote for 4 windows and a door fitted at around £1800, sounds about right yes?

However if I pay on a credit card it's 3% extra, can't quite work out if I put it on a 24 month interest free card, and stick the cash in a kids 2.25% account would it be worth it?

I don't need to hang onto the cash, it's surplus to my emergency fund

Bartown22

In fact just seen that AA are doing £35 cashbook, so I think I've answered my own question!

[Deleted User]

If you can earn more interest than the fee, then it's worth it.

However, children's accounts tend to have deposit limits, to prevent parents sticking their own cash into it and pretending it's their children's.

So obviously you'd want to put it into your own account.

TheShape

If you can put it on a 0% purchase card and keep the £1800 in an account paying more than 3%, perhaps Nationwide FlexDirect 5% you will gain after a certain amount of time. If you get cash back or a joining incentive that may also make it worthwhile or increase your gain.

TheShape

Someone correct me if I'm wrong but would you also not gain even if the savings rate was no higher than the fee so long as you can hold those savings for long enough.

For example, put the £1800 (+£54 fee) on a 0% purchase CC for two years and put/leave the £1800 in a Tesco Current Account at 3%. At approx 1 year you break even and move into profit thereafter.

MallyGirl

you also get some protection by buying on a card

redux

TheShape wrote: »

If you can put it on a 0% purchase card and keep the £1800 in an account paying more than 3%, perhaps Nationwide FlexDirect 5% you will gain after a certain amount of time. If you get cash back or a joining incentive that may also make it worthwhile or increase your gain.

The rate of repayment on the card also comes into consideration.

If someone budgets to pay the card balance in regular equal payments to end at zero, then effectively they've borrowed an average of half the balance across the timespan.

Of course if they have the bank account alongside, they would make lower card repayments and leave the rest temporarily earning interest, but even at minimum repayment the card balance would be reduced a bit by the end of a couple of years.