which account for the snooze pot ?

ard123en

hi folks

I cleared my credit cards months ago time for revenge :j

just been approved for a new egg money card and have an rbs with 9 months 0% on the way

I would like to pay the min payment by dd from the pot so as not to which saving account will give me the best return plus allow dd ?

YorkshireBoy

ard123en wrote:

I would like to pay the min payment by dd from the pot so as not to which saving account will give me the best return plus allow dd ?

"snooze"?!!

I've never really looked at this before, but for me there's nothing wrong with transferring back each month (if you can't make the payments from income) from a separate stooze pot - mine is with ING at 4.75% but there are probably better.

My minimum payments have been as high as £1,300/month this year, and allowing for a 5-day transfer (to be on the safe side) back to my current account in time for the DD's results in 53p less interest per month.

Someone will be on soon to tell you about some current accounts that might help you, but why open more accounts? - the less work you have to do the more satisfying stoozing is.

MrChips

Talking of less work....

I have managed to get Capital One to set up an automatic "direct debit" balance transfer to pay my monthly minimum payments back to my egg card every month and keep it maxed out for the whole 9 months.

Just to wring the extra bit of interest out of it :-)

YorkshireBoy

MrChips wrote:

Talking of less work....

I have managed to get Capital One to set up an automatic "direct debit" balance transfer to pay my monthly minimum payments back to my egg card every month and keep it maxed out for the whole 9 months.

Just to wring the extra bit of interest out of it :-)

Now that's clever MrChips!

Mrs YB has an 18 month card from last time around with fee-free BT's, and only today I've been looking at ways of optimising this deal by doing BT's every 3-4 months or so (min payments are only just into 3 figures) to recycle the monthly min payments back to the stooze pot.

Can this be set up on the web or did you need a human?

MrChips

It was a bit of an accident really. I used to phone them up every month after my min payment turned up on the account to get it transfered back to my Egg mule cos there was no BT fee.

After about the third time I jokingly asked if there was some way this could be set up automatically and the helpful guy on the phone said he thought there should be but it wasn't something he had done before. He got his supervisor over and between them they managed to set it up. Basically they set up a "fixed payment", equal to my most recent monthly payment, to go from my account every 1st of the month (about 3 days after my min payment is supposed to turn up) until further notice.

I was a bit worried after the call was over cos I thought of all the things that could go wrong (i.e. what if the fixed payment is more than my min monthly payment one month, what if there is a delay one month and the payment tries to go out of my account before the min monthly goes in, e.g. bank holiday or something - will I get charged and mess the whole thing up?)

Anyway, I don't think I need have worried - the payment that goes out doesn't seem to be fixed after all, but is just exactly the same as the min monthly payment that goes in, i.e. the max BT I am allowed. 3 months down the line everything is working well. I would recommend trying it.

I don't have an internet account but that would be useful, can I set one up even though I didn't apply through the internet?

YorkshireBoy

@MrChips

Very interesting. Just trying to work out the mathematics of it all.

eg...
Credit limit = £10,000
Max BT allowed = £9,900 (have to leave £100 available to spend I believe)
3% min payment = £297 collected on 28th of the month
New balance = £9,603
Auto BT a "debt" of £297 from Egg (sends £297 cash to Egg) on 1st of following month
New balance = £9,900 (again)

Provided you don't use the card for anything else (you shouldn't anyway as they tend to be BT cards only), the min payment will *always* be £297. Are their systems so clever that they can "calculate" 3% or more likely, they have somehow got a static (as you said earlier "BT DD") payment of £297 set up?

Possible problems...

1. Need to separate the min payment and the auto BT from Egg by a few days to be on the safe side in case something goes wrong with your payment (having said that they're in charge of collecting a DD - you just have to have funds available).

2. If you get a credit limit increase half way through the 0% intro period (and BT this as well), the whole thing needs "re-jigging" to cater for the new min payment amount (unless their systems *are* clever enough to work on percentages).

3. Any mishaps with the min payment collection and you've gone over your limit, meaning fines totalling around £50 and a '1' on your credit report showing payment one month in arrears.

4. Whilst min payments can and do include "pence", doesn't the BT have to be in "whole" pounds? Would therefore need to set up your initial BT from Egg (or other SBT card) so that the min payment came out in "whole" pounds or the balance would "drift".

Have I missed anything?

On the subject of online account access, I'm certain that this is possible irrespective of application method but, as Mrs YB's account has been set up for a while now I can't remember how we did it!

MrChips

Trying to combine revising for my exam tomorrow, watching the cricket and sorting out my finances ;-)

I'll talk further on this tomorrow when my exams are over cos it will take a while to make a full response on this I think, and take into account every angle.

Clariman

ard123en wrote:

hi folks

I cleared my credit cards months ago time for revenge :j

just been approved for a new egg money card and have an rbs with 9 months 0% on the way

I would like to pay the min payment by dd from the pot so as not to which saving account will give me the best return plus allow dd ?

The highest interest paying accounts are general online savings accounts rather than current accounts, so they don't usually have the ability to set up direct debits. However, they all allow you to set up online payments up to a month ahead. It should be pretty easy for the stoozer to get in to a similar routine to mine. When the statement arrives I check it and the log on to the online system for my stooz pot, set up the minimum payment to leave my savings account 7 days before it is due, log off, file the statement. All done in 5 to 10 minutes.

You can find a list of savings accounts that are specifically suited to stoozing here http://www.stoozing.com/savings.htm

Clariman