# 0% money transfer from mbna



## dublinhead (10 Aug 2011)

Mbna are offering me 0% money transfer to my current account until feb 12.

Is there anything to stop me transfering 8,000 euro and putting it a high interest account until then?

Would the direct debit i have set up take back the 8000 at the end of the month?

Has any one done this and is there any catch I am missing?


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## aristotle (10 Aug 2011)

Just read the T&Cs?


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## ANORAKPHOBIA (10 Aug 2011)

I think you will find that MBNA are only offering balance transfers from other cards interest free. They have previously offered an interest free period for cash transfer to a current account.


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## mur42 (10 Aug 2011)

MBNA are offering 0% transfer into a current account.  I have just taken up this offer and transferring €5,000 into my current account to clear a car loan.  This is a great offer if you can pay it back before you have to start paying interest.  Saves a lot of interest on other loans if you can manage it.

I took out the same offer with them last year and didn't pay them a penny interest!


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## dublinhead (10 Aug 2011)

Thanks for that info, thats what i wanted to know.


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## Macstuff (14 Aug 2011)

I don't have a personal credit card and have good credit history - totally clean, and a decent income. 
Could I apply to MBNA for a card and then do an immediate balance transfer to my current account? Or do they insist that you become a customer for a period before doing this?
What sort of credit limit would I get initially?


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## horusd (14 Aug 2011)

Macstuff said:


> I don't have a personal credit card and have good credit history - totally clean, and a decent income.
> Could I apply to MBNA for a card and then do an immediate balance transfer to my current account? Or do they insist that you become a customer for a period before doing this?
> What sort of credit limit would I get initially?


 
I don't see any reference to this on the mbna wesbite. Perhaps it's existing customers only. If it applies to new customers, can someone stick up a link please.


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## DublinTexas (15 Aug 2011)

Existing customers mostly got a letter / e-mail telling them about this offer together with big announcement boxes in the online management interface on the web.

New customers can see similar offers (Example 0% balance transfers for 10 month) on the webpage where you apply, different cards have different offers.

But giving todays bloomberg report about them getting out of Ireland the question is how long this will continue.

What is great about the 0% offers is that payments to the account always are allocated to the highest % balance first so you first pay your normal shopping balance while the 0% balance is paid last.

So if you have a balance you could in theory do a money transfer to your current account and than a couple of days later make a payment so that your hight interest balance is cleared and you have the 0% left.

But if they get out of Ireland than all of this might end.


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## STEINER (9 Dec 2011)

I availed of this offer and got 8k today which I stuck on deposit.

I will repay MBNA 7.5k in June 2012 and it won't cost me a cent in fees or interest, just a monthly outflow of 80 per month minimum payment for the next 6 months.

What I find interesting is that I applied through my MBNA online account, I didn't speak to any agent or sign any agreement, easiest 8k loan I will ever get.


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## thedaras (9 Dec 2011)

Thats  very interesting,I got one of those offers as well and never thought to put it such use.

I wonder how much will you get for 8k deposit,(I can never work out the 3/4/5%/DIRT etc etc)..
At the end of the six months how much minus tax/capital gains etc will I end up with?


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## Marion (9 Dec 2011)

Just be careful not to use the card for purchases after you deposit the money. 

This is the perfect loan IF you don't use the card afterwards until the loan is paid off in full.

I'm open to correction on this. 

Marion


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## The Ghoul (9 Dec 2011)

thedaras said:


> Thats very interesting,I got one of those offers as well and never thought to put it such use.
> 
> I wonder how much will you get for 8k deposit,(I can never work out the 3/4/5%/DIRT etc etc)..
> At the end of the six months how much minus tax/capital gains etc will I end up with?


You'd get around 3.8 to 4.0% gross AER. If you were to get 3.8, your net interest on 7.5k after 6 months would be 99 quid.

What's the cost of getting one of these cards and cancelling it after 6 months - 30 quid stamp duty, anything else? Do I smell a 69 quid free lunch? Is this what is known as "stoozing"?

edit: I may have been a bit off with the 3.8 - 4.0% estimate. These rates are available but you might need a minimum balance of 10,000. I see from the thread listing deposit rates that PTSB give 3.53% AER gross on 6 month accounts with minimum balance 5000. Here is the thread:
http://www.askaboutmoney.com/showthread.php?t=101813


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## DublinTexas (10 Dec 2011)

Marion said:


> Just be careful not to use the card for purchases after you deposit the money.
> 
> This is the perfect loan IF you don't use the card afterwards until the loan is paid off in full.
> 
> ...


 
Well, the devil is in the details.

You can use your card for purchases after doing the balance transfer to your current account without any problems, in fact since April any payments you make will always go to the amount with the highest APR first.

MBNA has an announcement and FAQ about that [broken link removed].

So in our scenario to to be able to make money you need to ensure that before the end of the 0% period on offer you have paid back any higher % APR balances you might have occured (i.e. spending after the balance transfer has been done) so that the repayment of the balance transfer money is than getting towards the 0% interest portion of your balance.

It's a short good loan (over x-mas for example) if you manage your card account afterwards and repay any high % spending before the end of the balance transfer period.


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