0% credit card loan as a savings device?

[WendyS]

Is anybody borrowing money at 0% on their credit card and sticking the sum in a high interest savings account , just paying off the minimum monthly sum until the debt is due for repayment? Is it worth the hassle to save a few extra quid?

[Bonzo 2000]

I know some people who have made a bit of money by doing this, but most of the credit card companies are wising up. Its usually the case that they apply a handling fee to cash advances, and this will offset any saving you could make. The only simple to make a profit is if you need to buy a single large item that you would otherwise pay for out of savings. You then buy it on your new card, enjoy the 0% period and keep your savings in a high interest account for the time. Its still a lot of hassle though for a few quid saved.

[stevie21]

Calculate how much you're leaving in your savings and exactly how much interest (possibly after tax) that you'll earn.
Personally I wouldn't go to the trouble unless I was buying a car or something.

Also, I'm too lazy to calculate interest earned on �10K in month 1, then �9K in month 2 (you pay �1000 towards the credit card from your savings) etc. etc.

[STAH]

Hi Wendy,

Most credit card companies are charging a fee to transfer the balance. Furthermore, they may only do it to a credit card - not a bank account. So, you would have to go to the trouble of transferring the money again from your exising credit card to the savings account.

I had thought about it myself in the past in all honesty!!

However, with the fees and the time and efforts involved, I decided against it!

[WendyS]

Not such a good idea then. Sounds as if my time would be more usefully spent weeding my vegetable patch. At least I'm saving money my growing my own !