Money transfer worth it?

Nuggy96

Just remortgaged for 2 years and I've been offered a money transfer from existing card 0% interest 12 months 2.9% fee, got 12k limit.

Is it worth taking it just to stash in a cash ISA for 4.5%? If rate stays at 4.5% for 12 months i make £160 if I took 10k? I can't imagine ISA interest rates falling below 2.9% in the next 12 months.

Thoughts? Thanks in advance

Voyager2002

Your return would be slightly lower than calculated because you would need to make regular withdrawals to meet the minimum payments.

All in all, it is a fair amount of trouble for a small return. And significant risk: a slight mistake leading to a late payment would wipe out all your profit.

poseidon1

Voyager2002 said:

Your return would be slightly lower than calculated because you would need to make regular withdrawals to meet the minimum payments.

All in all, it is a fair amount of trouble for a small return. And significant risk: a slight mistake leading to a late payment would wipe out all your profit.

Kind of have to agree.

That said Sainsbury offered 12 months interest free cash advance  with zero fee ( so free money).
Naturally I bit their hand off, stashed £11,000 into a fixed deposit for a year at 4.4%. 

Of course have to make the mandatory 2.25% minimum monthly statement payment to Sainsbury (by DD )  in the interim, but all that means is  I will have less to pay back at the end of the fixed term deposit, so thanks Mr Sainsbury!

Generally though, if an upfront cash advance fee is required, it is just not worth the hassle.

Nuggy96

Voyager2002 said:

Your return would be slightly lower than calculated because you would need to make regular withdrawals to meet the minimum payments.

All in all, it is a fair amount of trouble for a small return. And significant risk: a slight mistake leading to a late payment would wipe out all your profit.

True on payments I'd lose maybe £1k worth of funds getting interest over the year. Maybe like £10 worth but still make £150.

Risk wise I'd just set a DD for minimum payment. I don't have to apply for the card it's an offer on an existing card

masonic

I've always avoided 0% options where there is a fee. I've usually been able to find a no fee way of borrowing for a stooze.