Interest Free Loan

Shin_11

Hi All

Iam getting an interest free loan for 12 months of £10,000 or even more....I was thinking of investing this into a high interest online saver account.

My assumption was if I place this into this a/c paying 6.25%, I would get around £52 ineterest p/m, minus tax around £42?

£42 * 11 = £462....which is not bad for nothing and also I can add more to this a/c if I like. The reason I have chosen 11 months and not 12, becuase this provider does start bringing in charges on the 12 month and I rather be safe with 11 months and not over greedy I suppose.

This all seems to good to be true, does any one know of any downfalls?

e.g. tax problems or anything else?

Many Thanks

i_need_help_3

hi this sounds pretty good to me aslong as there is no downfall. Can i ask which company its with?

Shin_11

MBNA....only if you are long term customer and have a good credit rating with them.

YorkshireBoy

If this is from their credit card, it's called "stoozing". There's a board dedicated to it:

http://forums.moneysavingexpert.com/forumdisplay.html?f=95

...and even an entire website:

https://www.stoozing.com

Shin_11

its not stoozing as such....I have a credit card debt of £950 which I have been managing by changing to 0% interest credit cards. But I had a account with MBNA from before and a good credit rating with them. So I rang them and asked if I could re-transfer my balance from another credit card and see if I can get an interest free period. So MBNA in return said, they will give me £4000+ interest free for 12 months, hence the reason I am interested in taking as much as possible and investing it in an high interest account and making enough free cash to pay but my initial debt.

Anything I should be concerend about?