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  • FIRST POST
    • AndyPoll
    • By AndyPoll 8th Apr 18, 12:39 PM
    • 15Posts
    • 7Thanks
    AndyPoll
    Free Money Transfer tip
    • #1
    • 8th Apr 18, 12:39 PM
    Free Money Transfer tip 8th Apr 18 at 12:39 PM
    Hi there,

    I posted this before as I wanted to know whether it would work. I did it, it does work and in the spirit of sharing I thought I'd give the details.

    I applied for a 0% balance transfer card with Santander. Got 8.5k limit at 27 months interest free and crucially there was no fee for the transfer.

    I held c3k with a Nationwide card that was coming to the end of its interest free period.

    Applied for Santander to pay 8k to Nationwide as the balance transfer, rather than the 3k owed.

    It went through. Nationwide card then had a positive balance of 5k. They transferred it into my current account.
    That 5k is now safely in my ISA earning interest.

    As money transfer cards usually have a 3-4% fee, stoozing just doesn't work at current savings rates unless you stick it something pretty risky. This trick above is a nice little workaround to avoid that problem.

    Feel free to give it a go - no charge from me
Page 1
    • Sncjw
    • By Sncjw 8th Apr 18, 1:42 PM
    • 1,772 Posts
    • 1,049 Thanks
    Sncjw
    • #2
    • 8th Apr 18, 1:42 PM
    • #2
    • 8th Apr 18, 1:42 PM
    You still owe the 5k it!!!8217;s not free money.
    • PeacefulWaters
    • By PeacefulWaters 8th Apr 18, 1:56 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    • #3
    • 8th Apr 18, 1:56 PM
    • #3
    • 8th Apr 18, 1:56 PM
    You still owe the 5k it!!!8217;s not free money.
    Originally posted by Sncjw
    The interest earned will be.
    • AndyPoll
    • By AndyPoll 8th Apr 18, 2:13 PM
    • 15 Posts
    • 7 Thanks
    AndyPoll
    • #4
    • 8th Apr 18, 2:13 PM
    • #4
    • 8th Apr 18, 2:13 PM
    I'm aware that I owe it. This is why I'm keeping it in a cash ISA with a historically poor rate of interest, only 1.4% with Nationwide. I don't want to take any risks that may jeopardise paying it back in full when the interest free period runs out.

    If you want to do this and he more speculative, the money could be placed in a Stocks and Shares ISA, if you go for fairly vanilla stocks you'd be very unlikely to lose money over the 2 year interest free period, however I'm not in a position where I have an appetite for that risk level.
    • Nebulous2
    • By Nebulous2 8th Apr 18, 2:58 PM
    • 1,870 Posts
    • 1,126 Thanks
    Nebulous2
    • #5
    • 8th Apr 18, 2:58 PM
    • #5
    • 8th Apr 18, 2:58 PM
    You still owe the 5k it!!!8217;s not free money.
    Originally posted by Sncjw
    Depends how you read it, whether you think he meant that.

    I saw it as "Free Money Transfer."

    not as "Free Money."
    • blitzboy
    • By blitzboy 9th Apr 18, 10:48 AM
    • 449 Posts
    • 248 Thanks
    blitzboy
    • #6
    • 9th Apr 18, 10:48 AM
    • #6
    • 9th Apr 18, 10:48 AM
    This works occasionally, I used to do it with a M&S card. Most will only transfer it back to where it came from though (reverse the original transaction).


    If you know you have 27 months before you need to pay back the 5k have you considered a 1 or 2 year fixed term deposit to increase the interest rate a bit? Or slowly feed some of it into regular savers at the maximum they allow per month (around 200) whilst keeping the rest in an ISA or similar? Can't imagine you'll be getting much from an ISA only.
    • radoslaff
    • By radoslaff 9th Apr 18, 12:01 PM
    • 109 Posts
    • 34 Thanks
    radoslaff
    • #7
    • 9th Apr 18, 12:01 PM
    • #7
    • 9th Apr 18, 12:01 PM
    If you put the 5000 in two Tesco current accounts at 3%, it's way better than the ISA's 1.4%. And if from there you feed it into a few regular savers at 5% it will be even better.
    The journey of a thousand miles begins with one step.
    • AndyPoll
    • By AndyPoll 10th Apr 18, 11:43 PM
    • 15 Posts
    • 7 Thanks
    AndyPoll
    • #8
    • 10th Apr 18, 11:43 PM
    • #8
    • 10th Apr 18, 11:43 PM
    Thanks everyone.

    Yeah I could probably do a bit better with it than a cash ISA. I only went with that because as a Nationwide customer already the account took about 2 minutes to set up. I've already got the regular savers but the Tesco accounts are worth a look. If I can deal with the hassle of setting up whatever payments are needed to get the interest I could well do that.

    Interesting that some cards pay the money back to source. I did think that's what would happen. Maybe I just got lucky. It's quite a big loophole if it works every time.
    • faddy
    • By faddy 11th Apr 18, 12:29 AM
    • 466 Posts
    • 52 Thanks
    faddy
    • #9
    • 11th Apr 18, 12:29 AM
    • #9
    • 11th Apr 18, 12:29 AM
    I inquired with Nationwide how they would treat a credit balance and was told that while they would send it to a current account, if it was greater than 3000 it would take 10-14 days to allow for money laundering checks. Did you experience that sort of delay? I'm wondering whether the CSA I spoke to didn't realise I was talking about funds from a balance transfer and thought I meant a large cash deposit to my card account.

    You're not the first person to report success with using their Nationwide card in this way.
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