How to get 12.5% PA on your savings (Accucard)

Member Name: jdidlock

Product:	Accucard
Date:	12/04/04 (94 review reads)
Rating:

Advantages: Cash-back, on-line accounting, no paper statement.

Disadvantages: Only those which attach to any credit card, you have to keep control!, Not sure if a paper statement is available for those who are not on-line.

Like phoebe1, we pay our credit card off each month (having at one time run up £11,000 in debt I can truthfully say, been there, done that) so we only use a credit card to assist cash flow. However, our average spend is around £600 a month and we could easily pay that off and stop using the card but choose not to because of the cash-back.

Think of it this way. A £600 cushion sits in a cash ISA earning about 3.5% a year. Meanwhile, our monthly turnover of £600 on the Accucard earns 0.8% per month which as an annual rate is no less than 9.6%. Since our pension income covers the monthly settlement, we don't touch the cash so it means that in reality the £600 earns no less than about 13.1% PA! At the end of the year, we have a smaller settlement amount due to the cash-back credit, so that money (about £60) is added to the ISA which has itself earned around £20 which is a total of around 12.5%! Whoopee!

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