RBS card - 0% BT and purchase periods question

tsharp

Hi,

I recently BT'd about £2k to an RBS card with 13 months interest free and 3 months interest free on purchases.

Rather stupidly i made a purchase on the card for £108, and now that the 3 month int free period is over i am now obliged to pay interest on it, which i work out at 1.094% p/m.

At first i was going to BT the whole amount to another card to get it all interest free etc. But then i realized that 1.094% on £108 is about £1.18 per month, so over the course of 12 months (when i plan to pay off the card entirely and close account due to end of BT period) this will be about £14. (i realise this will not be the exact figure as they will charge interest on the interest etc)

Whereas the BT fee elsewhere would be about £40 to £60. So as long as RBS are only charging me interest on the purchase and not the BT, it's cheaper to keep the debt/card and make payments as usual.

Just to check i am correct on this before i leave it where it is. Does this make sense?

Milarky

Not very helpful information here:

Allocation of Payments We will apply payments we receive to your account in the following order:

1. Interest on special offers
2. Other interest, any fee and charges
3. Special offers
4. Purchases and balance transfers
5. Cash advances and money transfers

See section 2(D)(b) of your Credit Card Agreement for full details.

I can't find '2(D)(b)' or a RBS credit agreement containing it. So let's assume that the good news is that interest on the £108 at least gets taken off as part of the minimum payment also - so that it doesn't compound all the time you are holding onto the transferred balance

You are quite correct in your conclusion that it will cost more to fix the problem than live with it.