Super Balance Transfers - advice wanted

r_holmes22

Is it worthwhile getting a few thousand pounds into your bank account via a super balance transfer (I have an Egg card), transferring it to a savings account for a month (ING) to accumulate a few pounds in interest, then paying it all back to the credit card again before you are charged interest? Are there fees incolved that would negate the interest earned, or would you perhaps have to have the money in your savings longer than a month to earn it?

YorkshireBoy

You're referring to something called "stoozing", and it's normally a longer-term activity.

The downside to your plan is the interest lost whilst in "transit", ie 7-10 days quoted by Egg (in practice takes around 3 days) to move it to your current account, 3 more days (+2 more if weekend involved) to move to your savings account. Coming back will also involve 3 days lost for each each transfer (+ at least one more weekend).

Could possibly lose min 12 days/max 19 days interest! £10K borrowed "might" net you £11.78 (at 20% tax rate). Now do it over 6 months and keep paying the minimum payments each month (and recycling them), and your "profit" increases to nearly £190.

Read Martin's articles by clicking the yellow "credit card" box to the left of this screen to see how it should be done. Further info on https://www.stoozing.com

r_holmes22

Thanks very much; appreciated.

Cheers.