Question re timing

NorwichMan

Well I decided to have a go at this, I think I'm doing everything right but would appreciate any comments from seasoned stoozers.

I have been accepted for an RBS 0% balance transfer (for 16 months) zero fee card, and requested to transfer almost £6k balance from another card. I was previously intending to pay that balance in full, but if everything goes okay I will instead put that in the best savings account I can find.

I am a little unsure about timings. From reading other posts I'm expecting the balance transfer payment should show up in the other card account within a day or two, which is before the payment is due in seven days on 29th August. I am hoping that they will then adjust the direct debit (normally set to pay the statement amount in full) correctly so that I don't have the balance transfer and a full statement payment - if that happens I'll have a large positive credit balance on the card which I want to avoid.

I'm wondering whether it's worth changing my direct debit now to be the "minimum payment" or even cancelling it entirely (and making a small manual payment if needed to clear the entire balance following the transfer). My question is, does anyone know how long before the due date will they take into account any other payments any adjust the direct debit? If the balance transfer comes in say on Thursday 24th, is it safe to assume the DD due Tuesday 29th will be adjusted correctly?

Now, I'm going to search for a good savings account or similar with the best interest where I can put about £6k away for about 15 months.

MorningcoffeeIV

It will still take the full balance.

You are probably too late to cancel it now, without incurring failed DD fees.

You'll need to ask for the credit to be returned.

NorwichMan

I might have answered my own question, having read more I believe that if my balance transfer payment is credited less than 3 working days before the DD is due, the DD will not be adjusted and I won't be able to change it from the full statement amount.

So, I think I'm going to wait to see if the balance transfer goes through by the end of tomorrow. If it does, all should be fine. If it doesn't I'll cancel the DD and be ready to make any small manual payments with a debit card if needed to completely clear the balance on Monday, before the statement due date of Tuesday. If that happens I'll need to remember to restart the DD next month.

Any advice would be welcome.

NorwichMan

MorningcoffeeIV said:

It will still take the full balance.

You are probably too late to cancel it now, without incurring failed DD fees.

You'll need to ask for the credit to be returned.

Oh, thanks, I didn't see this before I sent my last reply. Okay if that's right then I'll have to pay the full DD (which will leave me with a positive balance of several thousand) and then ask for this to be returned.

However I just requested the DD be changed to the minimum amount via the app and that seems to have been processed straight away. So I think all is good - the worst that happens is both the balance transfer and the minimum statement payment are credited, which will only leave me with a small positive balance of about £150 - and I'll spend at least this soon enough on that card. (I don't intend to spend on the new RBS card used to make the balance transfer). 

MorningcoffeeIV

NorwichMan said:

MorningcoffeeIV said:

It will still take the full balance.

You are probably too late to cancel it now, without incurring failed DD fees.

You'll need to ask for the credit to be returned.

However I just requested the DD be changed to the minimum amount via the app and that seems to have been processed straight away. So I think all is good 

That won't work as they need to give you 10 days notice of the amount - and that's done via the statement.

daivid

Cancel the direct debit, check the balance has been taken the payment due day (with all my cards this is a few days after the DD day), if not make the minimum payment. You may, if the BT is really slow, get hit for a few days at standard APR but this will be nothing compared to the money earned on savings at 5%+ for 16months. If you can’t/don’t want to fund the minimum payment of the BT card from earnings remember to hold back enough in instant access - chip is giving 4.84% at the moment

NorwichMan

Thank you. I've cancelled the DD with the CC company (using the app) and I think I've done this with enough time.

I've just realised I can balance transfer another card (Tesco Bank) to the new RBS card. I thought Tesco Bank was in the same group as RBS but it seems that's no longer true.

So I'll soon have a stooze pot of about £8k

I assume it's straightforward to make another BT from a second card once the new CC account is set up? I only requested the one BT when opening the new account.

Chip looks good for easy access, I'm also considering Charter Savings 1Y fix at 6% gross or maybe a cash ISA as I don't have an active one this tax year.

daivid

You can delete the direct debit through your bank (current account) instantly and the CC will not be able to claim payment, so as you are aware you would need to ensure minimum payment is made (should the BT not happen in time) and make sure to reinstate the DD if future spending is going to occur. As for the second BT that is straightforward through the RBS app - I never create the BT during application so always wait until the card is live to set it up myself. Some cards do limit the number of transfers in an offer period but RBS allow multiple (possibly unlimited) provided you have enough credit limit left.

NorwichMan

The BT is already showing in the pending transactions for both the old and new card. The DD is cancelled with both the old card and bank. I'll keep an eye on things but it's looking good I think. Thank you for the comments.