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Thoughts wanted on BT offers

Options
Hi
I have £2000 I'd like to BT.  I have the money to pay it off if needed.

One credit card offering 0% interest 3.5% fee for 18 months  so on £2,000 would be  £70 fee.  Could put this money in an 18 month bond at 6.05% AER so I calculate at the end of 18 months It would be £2185.16.  So taking the fee and the capital off of this I would potentially make £115.16 over 18 months. which works out roughly £76.77 for a year but  minimum repayments would lessen this amount.  Min repayment on this card is 2.5% so at the end I'd still have about £1200 ish to repay.

Another credit card is offering 5.99% interest 0% fee for 24 months so in a loan calculator I have calculated the amount to be repaid over 2 years WITH minimum repayments of £88.55 to clear the balance to lessen the interest chargeable after 2 years is £2,125.23.  If I put this £2000 in a 2 year bond currently available at 6.05% AER then after 2 years this £2000 would be £2249.32 .  So I would potentially make £124.09 over the 2 years which works out roughly £62.04 yrly.

I think I'd be better taking the second option but I would welcome other peoples thoughts .

Thank you

Comments

  • owl1999
    Options
    Personal preference but I would probably go with the first one just so I've got a smaller amount to pay off each month as it would feel like a much larger monthly expense. 2.5% would be £51.75, which is nearly £27 less than the second option. You could save the £27 each month and gain interest on that too

    After the 18 months I'd either pay it off as a lump sum or balance transfer again depending on my circumstances and interest rates/current offers etc, maybe top it back up to £2,000 with £800 from another purchases credit card (if you want to do some more stoozing)
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