Maths question - Pay off 0% spending card with savings or balance transfer and keep savings?

Nasqueron

NorwichMan said:

It's likely in my opinion that the interest rate on easy access savings accounts will continue to decrease, possibly significantly, over coming months. Whilst it's impossible to predict how this will change over 12 months, if you do the balance transfer there is an element of risk involved and you may end up with very little net "profit". Or even lose money if savings rates drop under 3% for a sustained period. Of course, it could go the other way if savings rates increase. I'm personally reducing my stoozing as I expect it to become less profitable or worthwhile.

You could get a fixed rate for a period of 12 months or so, or there are other investments (e.g. Nationwide Current Account pays 5% up to £1500 fixed for a year) but yes the rates will go down. Getting 2.3% for a LBS regular saver as an example was amazing 10 years ago