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#1 guitarman001

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Posted 17 January 2012 - 08:08 PM

Does anybody stooze? I've always viewed credit cards as the devil's spawn (lol) but I'm thinking about this whole stoozing thing... 0% for 15 months, take 10k and throw it into a bank account to get the interest on it. Does it matter what card (i.e. I can imagine it's not easy to transfer from a credit card straight to your savings account without some sort of fee)...?

#2 Sir Sidney Ruff-Diamond

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Posted 17 January 2012 - 08:46 PM

Does anybody stooze? I've always viewed credit cards as the devil's spawn (lol) but I'm thinking about this whole stoozing thing... 0% for 15 months, take 10k and throw it into a bank account to get the interest on it. Does it matter what card (i.e. I can imagine it's not easy to transfer from a credit card straight to your savings account without some sort of fee)...?


WTF is the point of that if the rate you're going to get is less than the rate of inflation? It's like getting a leaky bucket to decant water from their bathtub into your sink that has a drippy tap. Pointless at best, a waste of effort at worst.

Or am I missing something?

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#3 jonesinamillion

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Posted 17 January 2012 - 08:47 PM

It can't be that simple!

Most 0% don't apply to cash withdrawals / credit card cheques, and you'd still have to pay 3% minumim monthly payments, to get 3% monthly interest back?

#4 CrashedOutAndBurned

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Posted 17 January 2012 - 09:17 PM

Does anybody stooze? I've always viewed credit cards as the devil's spawn (lol) but I'm thinking about this whole stoozing thing... 0% for 15 months, take 10k and throw it into a bank account to get the interest on it. Does it matter what card (i.e. I can imagine it's not easy to transfer from a credit card straight to your savings account without some sort of fee)...?


Is this an old thread from 2004?
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#5 Voice of Reason

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Posted 17 January 2012 - 09:20 PM

Does anybody stooze? I've always viewed credit cards as the devil's spawn (lol) but I'm thinking about this whole stoozing thing... 0% for 15 months, take 10k and throw it into a bank account to get the interest on it. Does it matter what card (i.e. I can imagine it's not easy to transfer from a credit card straight to your savings account without some sort of fee)...?


It used to work when CC companies were falling over themselves to lend. Now withdrawing directly into a bank account via transfer or CC cheque is more difficult and has charges associated.

You could get a similar effect by putting daily spending on a 0% card and saving your cash (which earns interest) until it's time to pay the card off, but the benefit is pretty small given how low interest rates are. Also if you're even slightly late with the repayment you'd negate all the benefits, so only for those who are very disciplined.
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#6 desertorchid

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Posted 18 January 2012 - 02:21 AM

WTF is the point of that if the rate you're going to get is less than the rate of inflation? It's like getting a leaky bucket to decant water from their bathtub into your sink that has a drippy tap. Pointless at best, a waste of effort at worst.

Or am I missing something?



Yes you are. The debt is being eroded at the same rate as the savings. You will be better off by the spread between the savings rate and borrowing rate ie an arbitrage.

This is very easy in Asia at the moment with spreads of 4-5 % if you are willing to tie your money up for a bit.

#7 guitarman001

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Posted 18 January 2012 - 09:16 AM

It was just an idea...I'm going to look into it a bit more.
Rates may be low but the more interest the better - at least my bucket will be a little more full. If it works!

#8 kilroy

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Posted 13 March 2012 - 08:10 PM

It was just an idea...I'm going to look into it a bit more.
Rates may be low but the more interest the better - at least my bucket will be a little more full. If it works!

used to work when the balance transfer charge from the card was 3% and capped at 35 or so. Nowadays, charge is uncapped so that 3% upfront charge is what you can realistically expect to earn after tax over 12-18 months. I used to do it with my offset mortgage when base + 100bps was 6%.




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