Have you ever played this game? Get a credit card with 0% balance transfer rate for 12 months, transfer $10,000 from credit card to your CD account, earn free money of about $300 in your CD for a year and return $10,000 back to credit card company after a year? It may not work any more with CARD act and the lack of 0% balance transfer offers.
“Teaser rates aren’t going to go away, but they’re probably not going to be as lucrative for the consumer as they were — you’re going to see a higher rate and a shorter introductory term,” says Jerry Straessle, president and CEO of JLS Associates, a consulting firm specializing in the credit and debit card industry. If you are still into this game, read the devilish fine prints carefully before transferring the money from credit card account to your checking/CD accounts.
Even if you get 0% balance transfer rate for 6 months, you may not get higher rate in CD account to justify the balance transfer fee and any other one-time fee your credit card company charges. Always calculate the total fees and total gains you would make before writing the balance transfer check.