Min Payments on Credit Cards

Growingold

When borrowing on credit cards you have to bear in mind the minimum payments due on the amount borrowed.  Say for example you borrow £6,000 at 0% for 24 mths with a 3.2% fee.  That fee equates to 1.6% per year . Putting the borrowed money in a savings account you can expect to get an interest rate of 4.35% - 6% per year. So deducting the 1.6% fee you would think you might make 2.75% - 4.4% profit on the total amount borrowed but minimum repayments in fact reduce that as not all the borrowed money is receiving that rate all the time.  Also interest rates may come down.

Different cards have different minimum payment amounts.  The higher the minimum repayment the less gain there is to be made.

It would be interesting and helpful to know the minimum payments of the different cards.
For example
B/C is 3.25%
MBNA is 1%
Halifax is 1%
Sainsburys is 2.25%

Please feel free to mention others

daivid

RBS & Ulster Bank (and I assume NatWest) are 1%
Tesco 1% 

As I go for 0% no fee transfers only the minimum payment doesn't bother me, currently I'm getting 4.51% on instant access somthe money held back to cover payments is still earning a decent amount.

WYSPECIAL

MBNA are 1% minimum payment too.

You could squeeze a bit more out of the stooze by spending an amount equal to the minimum repayment each month. That way the amount you have outstanding at 0% will remain static or go down at a much slower rate.

Alternatively if you can't afford the minimum repayments from income, or don't want to, you can work out in advance the amount you will have to repay as minimum repayments and immediately put that in an easy access account. The rest you can tie up in a fixed term fixed rate account for the full length of the interest free period. That way you will probably get a better rate overall but not be subject to unfavourable changes to interest rates.

noh

The stoozing calculator makes it easier to work out the potential profit.
https://stoozing.com/stoozcalc.php