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  • FIRST POST
    • 7sefton
    • By 7sefton 10th Nov 18, 9:53 AM
    • 454Posts
    • 104Thanks
    7sefton
    What savings rate do I need to make money on this money transfer?
    • #1
    • 10th Nov 18, 9:53 AM
    What savings rate do I need to make money on this money transfer? 10th Nov 18 at 9:53 AM
    Hi all

    Barclaycard are offering me a money transfer to my current account at 0% for 18 months, with a 2.4% fee.

    Iím struggling to work out the savings interest rate I need I earn to make money on this transfer, over 18 months and probably with regular savers.

    Iím a higher rate taxpayer.

    Can anyone help / share the calculation?

    Thanks!
Page 1
    • MikeSuzuki
    • By MikeSuzuki 11th Nov 18, 9:34 AM
    • 6 Posts
    • 0 Thanks
    MikeSuzuki
    • #2
    • 11th Nov 18, 9:34 AM
    • #2
    • 11th Nov 18, 9:34 AM
    If you were able to secure 4% pa from the moment you received the money until you could pay it back net of the 2.4% they'll demand, you would have a chance of breaking even
    4% minus 40% income tax leaves you 2.4%.
    I got to 4% by multiplying 2.4% by 100/60 (or you could say, checking that 4% works by multiplying it by 0.6, since 0.6 or 60% is what you're left with after higher rate tax).
    Good luck in finding 4% with capital safety. I doubt it exists anywhere these days. And you'd need more than 4% to make it worthwhile.
    Alternatively, if you had other debt fetching much more than 2.4%, might you borrow at 2.4% and pay down some more-expensive debt?
    Mike
    Last edited by MikeSuzuki; 11-11-2018 at 9:37 AM. Reason: Wrong arithmetic!
    • PMcCarrol
    • By PMcCarrol 12th Nov 18, 5:43 PM
    • 6 Posts
    • 0 Thanks
    PMcCarrol
    • #3
    • 12th Nov 18, 5:43 PM
    • #3
    • 12th Nov 18, 5:43 PM
    This is so confusing haha
    How does Stoozing work?
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