Cashback v Interest

HillStreetBlues

I have two .5% CC and a Chase  1% debit card.
I bought some oil today (£622.44) and paid for it on my one of my CC as I worked out it's better
The cc will be paid in 43 days time and the cash is sitting in a Chase saver paying 4.85%
I have worked it out that the 0.5% cashback I lose it made up for the gain in interest.
The cut off point is about 38 days in my calculations,  are my figures correct?

Mark_d

Does it really matter?  We're not exactly talking about mountains of money here?  Any money you save by using your debit card will all be wiped out if, once in your lifetime, you need to make a Section 75 claim for your consignment of oil.

AmityNeon

Yes, ignoring any tax implications (cashback is not classed as income).

(0.5 ÷ 4.85) × 365 = 37.63

crumpet_man

Mark_d said:

Does it really matter?  We're not exactly talking about mountains of money here?  Any money you save by using your debit card will all be wiped out if, once in your lifetime, you need to make a Section 75 claim for your consignment of oil.

This is MSE, of course it matters

I have changed back to using cashback credit card instead of Chase debit card as the total reward will be very much the same and it is a lot easier to manage.  Credit card with DD for full payment from Chase Savings account vs leaving funds in Chase current account ready to spend on debit card or moving funds over periodically to cover spending.

HillStreetBlues

Mark_d said:

Does it really matter?  We're not exactly talking about mountains of money here?  Any money you save by using your debit card will all be wiped out if, once in your lifetime, you need to make a Section 75 claim for your consignment of oil.

Would S75 apply? as the purchase was 1200 units.

pochisoldi

HillStreetBlues said:

I have two .5% CC and a Chase  1% debit card.
I bought some oil today (£622.44) and paid for it on my one of my CC as I worked out it's better
The cc will be paid in 43 days time and the cash is sitting in a Chase saver paying 4.85%
I have worked it out that the 0.5% cashback I lose it made up for the gain in interest.
The cut off point is about 38 days in my calculations,  are my figures correct?

For me its 0.5% cashback + offset interest saving vs 1% Chase cashback and money goes out straightaway.

At the moment, I switch to using Chase for everything except "pay at pump" and "Section 75 stuff"* around 11 days before the statement is due. The recent drop in interest rates brought that forward by a day or so.
So for me it's credit card for anything spent after the statement date and before the 24th, and Chase for anything between the 25th and when the credit card statement goes out. (that's for 5.7% offset rate).
This was worked out with a spreadsheet, and tallies with your 38 days.
As the mortgage rate goes down the "breakeven" date happens earlier. When first opened a Chase account, the offset rate was so low, the lower cashback on the credit card wasn't worth the hit and everything went on Chase (along with the 5% roundups enabled).

*("Pay at pump" - so you don't end up with a £120 authorisation tying money up in an account paying 0% for 4 days, "Section 75 stuff"=anything that might need the additional protection you get with a credit card).

HillStreetBlues

pochisoldi said:

For me its 0.5% cashback + offset interest saving vs 1% Chase cashback and money goes out straightaway.

At the moment, I switch to using Chase for everything except "pay at pump" and "Section 75 stuff"* around 11 days before the statement is due. The recent drop in interest rates brought that forward by a day or so.
So for me it's credit card for anything spent after the statement date and before the 24th, and Chase for anything between the 25th and when the credit card statement goes out. (that's for 5.7% offset rate).
This was worked out with a spreadsheet, and tallies with your 38 days.
As the mortgage rate goes down the "breakeven" date happens earlier. When first opened a Chase account, the offset rate was so low, the lower cashback on the credit card wasn't worth the hit and everything went on Chase (along with the 5% roundups enabled).

*("Pay at pump" - so you don't end up with a £120 authorisation tying money up in an account paying 0% for 4 days, "Section 75 stuff"=anything that might need the additional protection you get with a credit card).

As I have two, .5% I've just worked out the Chase card will see little use atm but more when the interest rates drop.
Aqua will run 15th to 24th Amex 28th-13th  Chase 14th, 25th-27th I don't use a DD for Amex as it comes out 11 day before due date.
When I do use the Chase card have to remember the exclusions, good point at pay at pump I don't tent  to use it as do little mileage so can pick a time  place where I can go in to pay.
Will also use a CC if S75 is needed, also need to get into habbit of using Chase where Amex isn't accepted.

TheBanker

I have the Santander Edge credit card so get 2% cashback on upto £750. This also has far fewer exclusions than Chase. So I use Edge for spending up to £750 then everything else goes through Chase. If I am planning a purchase during the month that I know Chase excludes (car servicing this month!), or needs S75 cover then I'll save enough 'space' on the Santander card to cover it. 

steven141

TheBanker said:

I have the Santander Edge credit card so get 2% cashback on upto £750. This also has far fewer exclusions than Chase. So I use Edge for spending up to £750 then everything else goes through Chase. If I am planning a purchase during the month that I know Chase excludes (car servicing this month!), or needs S75 cover then I'll save enough 'space' on the Santander card to cover it. 

I do the same for my spending. I use my Chase card less and less these days. 

crumpet_man

Just to through another option in the mix, I use Zilch (2% at selected retailers including Amazon and 0.5% everywhere else) in combination with Curve card and Santander Edge 2%.

I think Zilch is treated like a credit card by merchants as it does not work for financial transactions such as paying a credit card.

jadex

crumpet_man said:

Just to through another option in the mix, I use Zilch (2% at selected retailers including Amazon and 0.5% everywhere else) in combination with Curve card and Santander Edge 2%.

I think Zilch is treated like a credit card by merchants as it does not work for financial transactions such as paying a credit card.

Interesting. So, are you shielding Santander Edge credit card from Zilch by using Curve which is a debit card?
So Zilch takes money not from your current account but from credit card?
Clever.
Triple cashback possibly from all cards if all stars are aligned.