First off, this will not be for everyone, but if you're financially savvy and good at keeping on top of your finances, then this could be a nice little spinner.
The basic idea is this:
1) Take a £10,000 bank transfer
2) Invest the £10,000
The interest rate you can invest, is higher than the interest you will pay, so works out that you can make up to £24.58 per month over 32 months giving you a total return of £569.50.
And here's how:
1) Open up a Virgin Money Transfer card offering 32 months 0% for a one-off 1.69% fee.
Applying for the maximum £15,000 will cost £253.50
Minimum payment will be £185/month
2) Open a Santander 123 bank acount
Cost £5 / month
3) Deposit the full Virgin Money Transfer into account
£15,000 now earning 3% interest per year
4) Now just wait and don't touch the £10,000 - leave it so you can repay at any time if you need to. This is not about borrowing money.
5) Fully repay the debt before 32 months and cancel the card.
After the 32 months here will be the scores on the doors:
£983 in interest - £160 bank fees - £253.50 = £569.50
***
- Don't borrow if you can't repay it
- There are higher rate interests to make this even more profitable, but I have provided the easiest route
***
Top comments
HellRazer
18 Jul 166#9
Has this deal not already been listed around a week ago?
lianghe1984
18 Jul 164#3
I believe to get that 3% interests, you need at least £500 paid in per month and two direct debit as well
Palwan
18 Jul 164#1
£15000 is quite a high credit amount, it will extremely rare to get that.
You have to pay the minimum balance every month (Your calculation will change on that).
In case you are going for mortgage this will reduce your affordability by £150 a month.
HappyGilmore1966
25 Jul 163#21
I just received an email from a Nigerian general who gaurauntees me a return of milions on my modest £10k investment. :wink:
Latest comments (25)
bbeettaa
25 Jul 16#25
This was posted some time ago.
In answer to the above points:
Credit rating - yes they will credit check you, massive hit - I query that, obviously don't be daft enough to do this if you are likely to be requiring credit in the near future. Do we really need to tell people this?
I also concur with the above, I've never seen 10% for P2P lending, unless you're fixing for a long time.
Side note - That's a lot of effort to make £18 per month (minus tax), is it really worth it?
Please can we start removing these posts where you can "make money", e.g. this, the switching of bank accounts etc.
jaydeeuk1
25 Jul 16#20
Useful card, got £11500 a week or two ago, have put some in p2p loans to earn 10-12%, rest in ISA. Will sign up for another money xfer card I reckon.
jamesslane to jaydeeuk1
25 Jul 16#24
Where can you get 10-12% on P2P? What are the risk levels to achieve those ROI?
Forreslad
25 Jul 16#23
The Chances of just "leaving" the £10,000 are very slim....for me anyway!
Scorpion
25 Jul 16#22
Note, beware if you already have other interest earning accounts as this kind of deal could be a lot of hassle for not much gain after tax:
Basic rate tax free interest allowance = £1000
Higher rate tax free interest allowance = £500
The interest earnt over those tax free amounts is liable for tax.
HappyGilmore1966
25 Jul 163#21
I just received an email from a Nigerian general who gaurauntees me a return of milions on my modest £10k investment. :wink:
bojangles
25 Jul 16#19
This could take a massive hit on your credit record - so be careful if you expect to make a major finance purchase in the near future - ie a House or Car, etc.
If you have an offset mortgage, then you could do this deal letting it sit in an offset account instead.
pablomalin
25 Jul 16#18
Posted already. BTW I believe most of people here already have santander current account and full allowance invested
p-e-t-e
25 Jul 16#17
WRONG - From Santander Website....To get cashback on your household bills and interest on your balance, just follow these steps: Blah blah blah
Its a good deal. I got a £6400 limit tho and I have a very high credit score so you probaby need to be a high earner to get the £10k+ limit
manicmidlander
18 Jul 162#10
I've been doing this kind of thing for years now but I normally do it by slow stoozing. Put all your day to day spending on a 0% purchase credit card and put the cash you would have spent in a Santander or TSB or LLoyds current account. When the 0% purcashe period ends flip the debt to another 0% balance transfer card. Keep doing that as long as you want or until they won't let you do it anymore. Then pay of the debt with the money in the high interest current account. It's not for everybody but if you're sensible you can get about £300 interest per annum on a £10,000 balance.
lianghe1984
18 Jul 164#3
I believe to get that 3% interests, you need at least £500 paid in per month and two direct debit as well
honeymonster86 to lianghe1984
18 Jul 161#5
That's just to get the cashback, to get 3% interest you just need to hold min. £3,000 in the account.
woldranger to lianghe1984
18 Jul 16#8
Not difficult to do - just set up a standing order from this account to another of your accounts and another from the recipient account back to this the next day. You can even just go in branch and remove £500 and then deposit it straight back in (my retired Father does this - he's got too much time on his hands!). As for direct debits, you can easily set up a Tesco bank online savings account and use that for a direct debit, plus something like paypal.
stevenkats
18 Jul 161#7
are you sure cash advance is interest free? may not be. plus there is a minimum repayment each month on interest free credit cards
billybob59
18 Jul 16#6
assuming Santander keep paying 3%
Palwan
18 Jul 164#1
£15000 is quite a high credit amount, it will extremely rare to get that.
You have to pay the minimum balance every month (Your calculation will change on that).
In case you are going for mortgage this will reduce your affordability by £150 a month.
honeymonster86 to Palwan
18 Jul 16#4
All good points, but please be aware I have already based calculations based upon the minimum payback.
Ticklehamster
18 Jul 16#2
and when the bank of England cut interest rates this could go -ve :confused:
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Opening post
The basic idea is this:
1) Take a £10,000 bank transfer
2) Invest the £10,000
The interest rate you can invest, is higher than the interest you will pay, so works out that you can make up to £24.58 per month over 32 months giving you a total return of £569.50.
And here's how:
1) Open up a Virgin Money Transfer card offering 32 months 0% for a one-off 1.69% fee.
Applying for the maximum £15,000 will cost £253.50
Minimum payment will be £185/month
2) Open a Santander 123 bank acount
Cost £5 / month
3) Deposit the full Virgin Money Transfer into account
£15,000 now earning 3% interest per year
4) Now just wait and don't touch the £10,000 - leave it so you can repay at any time if you need to. This is not about borrowing money.
5) Fully repay the debt before 32 months and cancel the card.
After the 32 months here will be the scores on the doors:
£983 in interest - £160 bank fees - £253.50 = £569.50
***
- Don't borrow if you can't repay it
- There are higher rate interests to make this even more profitable, but I have provided the easiest route
***
Top comments
You have to pay the minimum balance every month (Your calculation will change on that).
In case you are going for mortgage this will reduce your affordability by £150 a month.
Latest comments (25)
In answer to the above points:
Credit rating - yes they will credit check you, massive hit - I query that, obviously don't be daft enough to do this if you are likely to be requiring credit in the near future. Do we really need to tell people this?
I also concur with the above, I've never seen 10% for P2P lending, unless you're fixing for a long time.
Side note - That's a lot of effort to make £18 per month (minus tax), is it really worth it?
Please can we start removing these posts where you can "make money", e.g. this, the switching of bank accounts etc.
Basic rate tax free interest allowance = £1000
Higher rate tax free interest allowance = £500
The interest earnt over those tax free amounts is liable for tax.
If you have an offset mortgage, then you could do this deal letting it sit in an offset account instead.
http://www.hotukdeals.com/deals/cheapest-loan-cash-ll-ever-get-with-a-virgin-money-bank-transfer-credit-card-1-69-2475701
Its a good deal. I got a £6400 limit tho and I have a very high credit score so you probaby need to be a high earner to get the £10k+ limit
You have to pay the minimum balance every month (Your calculation will change on that).
In case you are going for mortgage this will reduce your affordability by £150 a month.