Money Transfer

Pat38493

I'm new to this but if an existing credit card is offering me a money transfer on 0% for 15 months with 3.5% fee with about £14K available, does this mean what it seems...

So I can tell them to transfer £14K to my current account, for a one off fee of about £500, and then I could make say 6% interest on that or whatever in a savings account or suchlike, so I would make a profit?

When do I pay the £500 fee - is that payable immediately or at the end of the 15 months?

Also I assume I would still have to make the minimum payment each month to the credit card as with any other credit card debt?

noh

With most cards you are allowed to transfer 95% of your available balance.
In your example you could transfer 95% of £14000 = 13300 to your bank account.
The 3.5% fee of £465.50 would be added to your card balance making that £13765.50.
You would still have to pay the minimum balance each month.
Use this calculator to work out if you will make a worthwhile profit.
https://stoozing.com/stoozcalc.php

Pat38493

noh said:

With most cards you are allowed to transfer 95% of your available balance.
In your example you could transfer 95% of £14000 = 13300 to your bank account.
The 3.5% fee of £465.50 would be added to your card balance making that £13765.50.
You would still have to pay the minimum balance each month.
Use this calculator to work out if you will make a worthwhile profit.
https://stoozing.com/stoozcalc.php

Thanks - what does the tax field mean in that calculator?  If I select 20%, this means all of the savings tax in this scenario is taxed at 20%, or it means first £1000 is tax free and rest is at 20%?  

I guess it must be the former based on the results it’s giving?

noh

Yes the tax field figure is applied to all the interest it doesn't take into account the £1000 0% savings allowance.
You will have to manually calculate any tax you may have to pay depending on your circumstances.

Altior

The best method (if you can get it) is to do a fee free cash advance, and use a BT card to pay off the original card that you got the cash advance from.

The jargon commonly used is that is a mule card.

It's far easier to obtain BT cards, and the fees tend to be lower. 

If the timing is right, you just pay a few pence interest on the mule card.