would this work?

Steve1981

sorry if Im being nieve but, I'm still relativley new to all this and want to know if this would work financially (or not)

i have just transfered the maximum amount that I can from my virgin cc to my current account to then put into my ISA (some this financial year, the rest in the start of the next) at 0% for 15 months with the 3% handling fee.

I have just been offered 0% on balance transfers for 12 months with barclaycard for 2.5% handling fee.

SOOO

If I transfered the balance from the Virgin card onto the barclaycard (paying monthly dd minimum payment) that would then free up the virgin card to then BT the same amount as the first time into my online bonus saver, right?

my understanding is that my online bonus saver doesnt get me quite as much as the ISA due to the tax side of things, my point being then would this work and due to the handling fees would this be worth while?

Steve

lisyloo

Depends a bit on your tax rate.
If you have to pay 40% tax then it's barely worthwhile.
You need to know your NET savings date (and bear in mind there may be a cut pending after the February bank of england rate cut).

You can gift money to your spouse with no tax implications.
So if you are married and your spouse pays a lower tax rate than you then give them the money to save.
Perfectly legal and above board/

Steve1981

lisyloo wrote: »

Depends a bit on your tax rate.
If you have to pay 40% tax then it's barely worthwhile.
You need to know your NET savings date (and bear in mind there may be a cut pending after the February bank of england rate cut).

You can gift money to your spouse with no tax implications.
So if you are married and your spouse pays a lower tax rate than you then give them the money to save.
Perfectly legal and above board/

and if we both pay the same tax rate?

knights

Steve1981 wrote: »

sorry if Im being nieve but, I'm still relativley new to all this and want to know if this would work financially (or not)

i have just transfered the maximum amount that I can from my virgin cc to my current account to then put into my ISA (some this financial year, the rest in the start of the next) at 0% for 15 months with the 3% handling fee.

I have just been offered 0% on balance transfers for 12 months with barclaycard for 2.5% handling fee.

SOOO

If I transfered the balance from the Virgin card onto the barclaycard (paying monthly dd minimum payment) that would then free up the virgin card to then BT the same amount as the first time into my online bonus saver, right?

my understanding is that my online bonus saver doesnt get me quite as much as the ISA due to the tax side of things, my point being then would this work and due to the handling fees would this be worth while?

Steve

Hi Steve 1981,

You would be advised to get an Egg Money card, (not Egg Card), this is an SBT card which you can BT to you Barclaycard. You can then move the money from EGG MONEY into your savings account.

Just as a point I think Barclaycard Platinmum offers 0% for 14 months @ 2.5% fee.

I am not sure whether Virgin would allow a further BT in the manner you have set out. Others more experienced will no doubt comment.

The general advice is that it is always best to send money via your current acc. into a savings account rather than from the CC.

regards

YorkshireBoy

knights wrote: »

I am not sure whether Virgin would allow a further BT in the manner you have set out. Others more experienced will no doubt comment.

They would, but they'd charge another 2.98% BT fee...thus rendering the deal unprofitable (2.5% to Barclays + 2.98% to Virgin to get the Barclay's money into your current account).

As you say, Egg Money is the answer.

Bokkens

Barclaycard will only allow you to BT 95% of your limit so there is another 5% you can't make any interest on.
reference your OP you had thought it through correctly although the fees were/are prohibitive.

CannyJock

0% balance transfer deals with Virgin are only within 60 days of opening account.

Ditto with other replies on getting the Egg Money card.

YorkshireBoy

CannyJock wrote: »

0% balance transfer deals with Virgin are only within 60 days of opening account.

Is that for new customers (on introductory offers) only? Reason I ask is that condition has never been applied to my (3 year old) account. Indeed, I've had an offer in my Virgin online area for 0.9% on BT's until September 1st for 5 months now.

Bokkens wrote:

Barclaycard will only allow you to BT 95% of your limit

Barclaycard's max BT (on 0%) is 90% of your credit limit, or £5K, whichever is the lowest.

CannyJock

YorkshireBoy wrote: »

Is that for new customers (on introductory offers) only? Reason I ask is that condition has never been applied to my (3 year old) account. Indeed, I've had an offer in my Virgin online area for 0.9% on BT's until September 1st for 5 months now. :)Barclaycard's max BT (on 0%) is 90% of your credit limit, or £5K, whichever is the lowest.

I drilled the CSA when I called to activate my card on exact dates for everything and recorded them all for future reference, and that was one of the facts they quoted. I'm just looking over my T&C's and it definitely says "In the first 15 months from the account opening date, we will charge interest at the rate of 0.0% p.a. (a year). After that, we will charge a standard rate of 15.9% p.a. (a year)".

The paperwork contradicts the CSA, so I'd go with the paperwork - 0% balance transfers at any point in the 15 months, with the comment that 2.98% fee applies regardless of whether you've got 15 months or 1 month left before the end of the introductory period so the sooner you do it the better.