Sony Credit Card plus 0%

Dawn_Dodd

I have just opened a Sony cc for the pulse points (free MP3 player). I have just been phoned by them offering to transfer up to my credit limit £8k straight into any bank account with a 3% balance transfer fee. This means I can effectively earn 3.5% plus for a year for doing nothing. Any comments - does it work?

Clariman

Pretty much, but don't forget that you pay tax on the interest you earn so you won't make a straight 3.5% on the money. You'd earn about £169 in interest by doing this, assuming that you have the money in a savings account paying 6.4% and that you are a basic rate tax payer. Plug the figures into this calculator to calculate the profit for yourself.

A couple of things to watch. The Sonycard has a shorter period on 0% for purchases. If you make any purchases on the card, then you will be paying interest on them for the full 12 months. Using a 0% BT card for purchases is a no-no unless the offer periods for purchases and BTs are the same.

Do you need to make a purchase in order to qualify for the MP3 player? I would guess you do, so it may not all be quite so rosy.

BTW - exploiting 0% offers to earn money on the interest is called Stoozing. See the sub-board on here.

Clariman

MABLE

Dawn_Dodd wrote: »

I have just opened a Sony cc for the pulse points (free MP3 player). I have just been phoned by them offering to transfer up to my credit limit £8k straight into any bank account with a 3% balance transfer fee. This means I can effectively earn 3.5% plus for a year for doing nothing. Any comments - does it work?

I too have been given a Sony credit card and am awaiting for their next fee free day. Unlike you I cannot afford to give them 3% transfer fee.

empfun

I didn't realise SBT (Super Balance Transfers) still exist.

Clariman

empfun wrote: »

I didn't realise SBT (Super Balance Transfers) still exist.

They certainly do. Egg Money and cards from MBNA primarily