0% cash transfer with 4% fee? 16 August 2018 at 10:36AM in Credit Cards 21 replies 1.9K views

Carolinemjs

Im having some minor building work done which will cost about £3000. I have the cash for this but I'm not sure whether getting the same amount at 0% for 30 months is a good idea?

campbell19925

Is this a trick question?

TrickyDicky101

Carolinemjs wrote: »

Im having some minor building work done which will cost about £3000. I have the cash for this but I'm not sure whether getting the same amount at 0% for 30 months is a good idea?

Why would you pay 4% if you don't have to?

shiny76

TrickyDicky101 wrote: »

Why would you pay 4% if you don't have to?

If their current/savings account earns them more over the 30month period than the fee for the money transfer

Carolinemjs

Its not a trick question, not everyone is totally clued up.
my thinking is that maybe if i kept the £3000 could get a better interest rate during the next 30 months where I might earn more interest than the fee of £120.
I like to keep a good amount in reserve in case of emergencies, it gives me a feeling of security, my only income is my state pension and a small amount from part time work.

onlyfoolsandparking

Its very unlikely interest rates on savings will ever earn more interest than what you would pay on B/T or credit card fees but I agree with keeping money in reserve for emergencies, CASH IS KING lol.


If you borrow the money and stick to the deal, pay it off within the 30 month period I don't see any problem with it.


I always say you cannot borrow money for free but you can borrow it pretty cheaply these days if you do your homework.

campbell19925

You could open a nationwide fixed saver put £2500 in and earn 5% over first 12 months so that would be £125 so you could do it that way

Carolinemjs

campbell19925 wrote: »

You could open a nationwide fixed saver put £2500 in and earn 5% over first 12 months so that would be £125 so you could do it that way

I would have to have a current acc with them and Im not sure how you arrive at £125?

campbell19925

Carolinemjs wrote: »

I would have to have a current acc with them and Im not sure how you arrive at £125?

Yes you have to open a new account and 5% of £2500 is £125.

Willing2Learn

campbell19925 wrote: »

You could open a nationwide fixed saver put £2500 in and earn 5% over first 12 months so that would be £125 so you could do it that way

Do you mean a FlexDirect current account? I couldn't find a fixed saver account on their website.

Carolinemjs

campbell19925 wrote: »

Yes you have to open a new account and 5% of £2500 is £125.

Unfortunately it wouldnt be that much because interest is paid on the amount that accumulates from the monthly payments not the full amount