Savings accounts accepting DD's

blindman

matty_art wrote: »

Ah will that work? Wasn't sure if they'd just want another cheque when I change nominated account.

Yes that works, had to do it myself.

mary

ColdIron wrote: »

It can be a problem, the trick is to spread recurring bills across cards. Three of mine always have purchases during a month (phone, e-fag juice, food etc). For the fourth I got a 0% purchase card (Tesco ironically) and put an expensive dental bill on it and make minimum £25 payments. That's 30 months of hassle free DDs. I admit I wouldn't like to juggle discretionary spending across all four, just a matter of organisation so you can set it up and forget about it

When you use your several cards, surely you can tick the box which says "pay off the full amount every month" and then you won't have to worry about forgetting, it will do it automatically from your linked account.

ColdIron

mary wrote: »

When you use your several cards, surely you can tick the box which says "pay off the full amount every month" and then you won't have to worry about forgetting, it will do it automatically from your linked account.

I do except for the 0% card where I make minimum payments (automatically). Making manual payments four times a month would be bonkers and hardly set and forget

spare_one

ColdIron wrote: »

I do except for the 0% card where I make minimum payments (automatically). Making manual payments four times a month would be bonkers and hardly set and forget

What card do you have for 0%, and how long does it stay at 0%? How often do you have to pay down the whole balance and then use the card for spending to start the whole thing again? Sounds to me like something you still need to stay on top of to avoid ending up losing more than you gained on paying interest...

Herbalus

spare_one wrote: »

What card do you have for 0%, and how long does it stay at 0%? How often do you have to pay down the whole balance and then use the card for spending to start the whole thing again? Sounds to me like something you still need to stay on top of to avoid ending up losing more than you gained on paying interest...

They have Tesco, 28 months I think, I have Sainsburys at 31 months. The way it works is you buy things on the card, say for arguments sake £100 per month, though it doesnt matter and can be variable. You set a direct debit for £25 per month. Then each month your balance goes up and you make your payment.

The extra cash you have (because you have not paid off the card in full and it is ordinary expenses - we are not actually borrowing like a loan) goes into a savings account for ease.

That way after 28 months or 31 months, you have say £3100 or £2800 on the card, minus your £25 x 28 or 31 (£700 or £775), so say around £2000 on the card. Then the 0% period ends and you pay off the card with money you have in your savings account, so pay no interest.

Close the card down (or change your usage pattern to pay off evety month) and get a new card for another 30 or so months at 0% to repeat the whole thing.

ColdIron

spare_one wrote: »

What card do you have for 0%, and how long does it stay at 0%? How often do you have to pay down the whole balance and then use the card for spending to start the whole thing again? Sounds to me like something you still need to stay on top of to avoid ending up losing more than you gained on paying interest...

Tesco
30 months
Once after 30 months
The 0% offer ends after 30 months, you can't start again, just get another offer
The £25 minimum monthly payment is taken automatically so nothing to stay on top of

There is no interest to pay, this is the whole point of 0% purchase cards, the clue's in the name. How it works is that you can spend up to your credit limit (£8,500 for me but they reserve the right to offer a lower limit) and as long as you make the minimum payment each month (£25) there is no interest. After the introductory period (30 months for me but now reduced to 28 months) you pay the whole balance off. This means that instead of paying the full balance each month you can keep your cash to earn interest on it and you get Clubcard points into the bargain. What's not to like?

Needless to say I will be sticking further dental work (implant), a few holidays and any kitchen appliances that pack up onto it

My main reason for getting it was to provide a hassle free Direct Debit that I can forget about until 2020

For further details have a look here
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

https://www.tescobank.com/credit-cards/purchases/index.html

spare_one

Sounds great. Just two questions: Does it automatically pay off the remaining balance at the end, and do you need a high credit rating to get 0% cards?

ColdIron

spare_one wrote: »

Sounds great. Just two questions: Does it automatically pay off the remaining balance at the end, and do you need a high credit rating to get 0% cards?

No, you have to make the payment yourself, stick a note in Google Calendar or whatever. Not especially I believe, the main factor would probably be the credit limit they are willing to extend like any card but I'm willing to be corrected

spare_one

I'm not so sure about the credit rating thing. I would think that the smaller the profits they stand to make (0%), the smaller the risk they would take, and lower credit rating means higher risk.

Herbalus

spare_one wrote: »

I'm not so sure about the credit rating thing. I would think that the smaller the profits they stand to make (0%), the smaller the risk they would take, and lower credit rating means higher risk.

Not always the case that 0% means lower profits. About 70%-80% of all card spending is paid off in full each month so no interest.

Plus always the chance that somebody forgets the minimum payment and starts to pay interest on a full balance of several months worth of spending.