0% Credit Card to pay for everyday spending, invest money saved.

[ThankmelaterOkay]

I’m thinking of applying for a credit card. Think it’s NatWest, 30 months 0%.

Does this mean I can just not pay it off until the end of the term? I have savings that I will put in a 2 year fix, say £20k. Then once this matures pay off the card. 5% fixed term bond, so £1k interest.

Am I missing something?
Say I want to buy in a property (FTB) in 12 months time, would this be a bad idea?

Thanks in advance for advice etc.

You would have to make minimum monthly payments.

Martin Lewis calls this stooging or something (iirc)

Ah okay. Sorry I’m oblivious to it all. I had an American Express card, and others in the past but I just paid them off in full at the end of each month.

Would a salary of £42k get anywhere near a credit limit of £20k?

You would need to make minimum monthly payments. Any spending after the introductory period is subject to interest, and the interest would be added to the total debt. Zero percent is okay if you are transferring a debt and then not using the card. For every day spending you are better off getting a card with benefits and paying off in full each month.

Hmm, maybe it’s not worth the effort.

Plan was to spend pretty much everything through it. Approx £1k/month. Meanwhile, put £20k into 2 year fixed term bond at 5%. Once card hits credit limit. Stop. Pay off towards end of introductory period. Seemed like £1k per year on £20k.

Compared with say 1% Cashback on Chase: £200 total.