Calcs for Sally Stoozer example

lfcno19

Hi, can someone please be as kind to breakdown how the Sally Stoozer figures were calculated? Namely how the £4,916 is calculated as well as the £425 at the end?

Sally Stoozer gets a 23-month credit card with a £5,000 limit. She usually spends £1,250 a month from her bank account, but now she puts all that spending on the card. So each month she pays the minimum payment on the card and transfers the rest to an easy-access account at 3.85%.

After five months she has around £4,916 there, which she transfers to an 18-month savings account at 5.15%. When that ends she has around £5,303 in the account, in time to clear the remaining balance on the card before her 0% deal ends – and has £425 left over.

daivid

£4916 will be 5 months spending minus 4 months of minimum payments - if the minimum isn’t paid any month the 0% offer will end resulting in a standard APR (anything from 15 - 30% typically).
£425 should be the profit at the end after all CC repayments are made.