Can I max out money transfer by combining with balance transfer?

rizblie

Hi - at the moment MBNA are offering up to 15K money transfer 0% 14 months card with a 3.59% fee, and RBS offer a 19-month no-fee 0% balance transfer. So I'm thinking of combining the two  to (almost) double the money I can transfer. See steps below. Has anyone done this? Any reason it would not work?

1. Get maximum money transfer from MBNA.
2. Transfer the balance to RBS (but leave min £25 in MBNA to keep the account open)
3. Do another maximum transfer from MBNA (within 60 days of opening)

Brie

Why?

Yes you can do a MT from MBNA which will (normally) be 95% of the 15k including the 3.59% fee.  So you'll be able to transfer about £13860. 
Yes you can do the RBS BT back to MBNA for £14250 that the MT cost you and then transfer the money from your bank account to RBS but it will be a bit short. 
And yes you then can do another MT from MBNA but it leaves you no further ahead than after step 1 really except that you now have 2 cards that you have to pay at least the minimum on for the period of the deal. 

Not sure what you mean by keeping £25 in MBNA to keep the account open.  Why would it close when you owe them money? 

rizblie

Brie said:

Why?

Yes you can do a MT from MBNA which will (normally) be 95% of the 15k including the 3.59% fee.  So you'll be able to transfer about £13860. 
Yes you can do the RBS BT back to MBNA for £14250 that the MT cost you and then transfer the money from your bank account to RBS but it will be a bit short. 
And yes you then can do another MT from MBNA but it leaves you no further ahead than after step 1 really except that you now have 2 cards that you have to pay at least the minimum on for the period of the deal. 

Not sure what you mean by keeping £25 in MBNA to keep the account open.  Why would it close when you owe them money? 

Thanks, but I think you may have misunderstood my step 2. What I mean is transfer the MBNA balance from step 1 to RBS, so that I am able to do a 2nd money transfer on MBNA.

My intention is that I get two money transfers i.e. 2 x 13,860 into my bank account via MBNA. The first one will be held in RBS for 19 months, and the second one with MBNA for 14 months.

Yes I know I will need to make 2 payments each month, but I am comfortable with that as in 14 months time I will be able to repay both cards in full. In the meantime I can use these money transfer to pay a bug chunk off my > 6% mortgage.

Note: MBNA Ts& Cs say that if you have less than £25, you have to pay it off (I wasn't sure if this means close the account, maybe not).

Brie

ok - but you'll still just have the max of £14250 on the MBNA card. 
and £14250 on the RBS
and £27720 credit in the bank.

Is that what you were after?  

6% mortgage saving of £27720 = about £1940 (maybe a bit more with compounding)
cost of the 2 MBNA MTs = £1126

So it's a small saving but not much.  

Sounds like the £25 is the minimum balance they allow owing on the card. So not going to close it just that they don't want small balances hanging about generating monthly statements etc.  

Stating the obvious - do be sure to set up at least minimum DDs with both cards.  I know MBNA allow you to set a fix amount if you like which might make budgeting easier to ensure things are paid off in time.  Less of an issue with RBS as you have more time.  

I would just double check that MBNA would let you do a second transfer - it sounds like they will but they may mean that £15k is the absolute max.  

Curious - do you already have the cards or is this all pre application speculation?  If so are you likely to get them both??  Sounds like you need the MBNA one more so that might be the one to start with just in case.

rizblie

Thanks @brie. The saving is small but it will grow if interest rates go even higher. Also note the transfer fee is a one off, but interest is annual. I may also be able to do another BT off the MBNA at a later time, to get more savings.
This offers me more stability. Next year I turn 55 and can take out a tax free lump sum from my pension to pay it off if needed.
Yes already been approved for both cards, but just want to see if I can push up the credit limits as I got a bit less than the full amounts allowed.

paul_c123

Yes it can be done, in fact the respective banks are happy to allow it, since they get the "transfer fee" each time. With you doing a 2-stage transfer in steps 1 and 2, you'll be paying 2x transfer fees - one to MBNA for the money transfer, then another to RBS for the balance transfer.

That's assuming you don't get the 0/0 deals that exist in theory, but that almost nobody actually has.

You could eliminate the fee of the first MT by choosing the "5.9% APR, 0% fee" option if its there. But you'll pay a little interest for the few days its in MBNA.

cymruchris

MBNA may not offer a 2nd transfer once you've had your first if done in relatively quick succession.

rizblie

paul_c123 said:

Yes it can be done, in fact the respective banks are happy to allow it, since they get the "transfer fee" each time. With you doing a 2-stage transfer in steps 1 and 2, you'll be paying 2x transfer fees - one to MBNA for the money transfer, then another to RBS for the balance transfer.

RBS do have a 0% balance transfer card with no fees, so I'll only be paying the 2 x Money transfer fees to MBNA, and not to RBS.

paul_c123

rizblie said:

RBS do have a 0% balance transfer card with no fees, so I'll only be paying the 2 x Money transfer fees to MBNA, and not to RBS.

That's good (if you have this offer). Most don't!

rizblie

paul_c123 said:

rizblie said:

RBS do have a 0% balance transfer card with no fees, so I'll only be paying the 2 x Money transfer fees to MBNA, and not to RBS.

That's good (if you have this offer). Most don't!

It is on their public web site: https://www.rbs.co.uk/credit-cards/balance-transfer-credit-card.html

paul_c123

Thanks, that's interesting. It didn't appear on my MSE eligibility checker. A 0/0 is a REALLY good deal at this time! (Did you get it)?