0% cash transfer with 4% fee?

Willing2Learn

Carolinemjs wrote: »

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

If he means the FlexDirect account, you can deposit the lumpsum £2500. I did that last week. I opened a Flex Regular Saver at 5% at the same time, which has a limit of £250/month

BakingC

You are paid interest on the amount that you have in the account up to £2500.

So if you always have a minimum balance of £2500 and pay £1000 in each month (then pay £1000 out) to meet minimum requirements you will get £125 (or thereabouts) assuming you havent had an account before and it is in there for the full 12 months

PRAISETHESUN

The Nationwide FlexDirect account pays 5% on a maximum balance of £2500 for 12 months from opening (only to customers who have never held a FlexDirect account before). The Flex Regular Saver (which is a savings account you can hold in addition to the current account) pays 5% on monthly deposits of up to £250/month.

I could be reading this wrong, but are planning to pay the builder with your credit card and they are charging a 4% fee? Or is this a money/balance transfer card you are drawing funds from that charges the fee? Regardless, in terms of maximising interest it's only worth putting the purchase on the 0% card if the savings rate is greater than the balance transfer fee. Otherwise you're better off paying with your existing money. Personally, I'd just use the cash to pay the bill then keep the credit card to use as your "emergency fund"

msallen

onlyfoolsandparking wrote: »

Its very unlikely interest rates on savings will ever earn more interest than what you would pay on B/T or credit card fees

You do realises there is a whole board dedicated to the topic of stoozing don't you?

onlyfoolsandparking

msallen wrote: »

You do realises there is a whole board dedicated to the topic of stoozing don't you?

Yes but this thread has got nothing to do with stoozing???

Carolinemjs

PRAISETHESUN wrote: »

The Nationwide FlexDirect account pays 5% on a maximum balance of £2500 for 12 months from opening (only to customers who have never held a FlexDirect account before). The Flex Regular Saver (which is a savings account you can hold in addition to the current account) pays 5% on monthly deposits of up to £250/month.

I could be reading this wrong, but are planning to pay the builder with your credit card and they are charging a 4% fee? Or is this a money/balance transfer card you are drawing funds from that charges the fee? Regardless, in terms of maximising interest it's only worth putting the purchase on the 0% card if the savings rate is greater than the balance transfer fee. Otherwise you're better off paying with your existing money. Personally, I'd just use the cash to pay the bill then keep the credit card to use as your "emergency fund"

Its the money transfer fee charged by the card.
I already have accounts where I'm moving money around to maximise the interest I can get. Dont really want to open another if I can avoid simply because it worries me keeping track of whats going where, and i dont want any more DDs for small amounts going to obscure charities


Thanks to everyone for your opinions I just wanted to double check.

Terry_Towelling

Nationwide FlexDirect doesn't require DDrs but only pays the 5% for 12 months on balances up to £2.5K and, as OP says, if they are going to pay off the credit card with the cash held in the Nationwide account, then that balance will be ever decreasing and earning less interest each month.

There are other cards out there that will do you a much lower cash transfer fee but it sounds far better to just pay the cash - unless the builder will take a credit card payment. If so, you can pay your card off in full by the payment due date and will have gained up to 56 days extra interest on your £3K and the peace of mind of knowing that you also have S75 coverage on the building work contract just in case.

ceredigion

onlyfoolsandparking wrote: »

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.

You can say it all you like, you are wrong though. I have never paid a fee or interest

onlyfoolsandparking

ceredigion wrote: »

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You can say it all you like, you are wrong though. I have never paid a fee or interest

That's fantastic!!! well done, really

msallen

onlyfoolsandparking wrote: »

Yes but this thread has got nothing to do with stoozing???

What?
That's exactly what this thread is about - saving cash that you've borrowed at zero or low cost so that you can earn more in interest on the deposit.