Personal Finance

check my math please on balance transfer

  • Last Updated:
  • May 11th, 2021 4:25 pm
[OP]
Jr. Member
Mar 28, 2016
150 posts
434 upvotes

check my math please on balance transfer

I currently have 2 balance transfer offers:
-Scotia LOC - 1.95% interest for 6 months (I see no fee listed in fine print
-CTFS - 0.0% interest till August, 1.5% fee

Say for $5,000 which is the better option?

Thinking the Scotia based on my first-time-doing-this calculations

5,000x(.0195/12)*6 = $48.75

and CTFS

5,000x.015 = $75

If I pay off the transfer before the due date, are these calculations correct?

Thanks!
2 replies
Deal Fanatic
Jan 19, 2017
5599 posts
3131 upvotes
dimplygecko wrote: I currently have 2 balance transfer offers:
-Scotia LOC - 1.95% interest for 6 months (I see no fee listed in fine print
-CTFS - 0.0% interest till August, 1.5% fee

Say for $5,000 which is the better option?

Thinking the Scotia based on my first-time-doing-this calculations

5,000x(.0195/12)*6 = $48.75

and CTFS

5,000x.015 = $75

If I pay off the transfer before the due date, are these calculations correct?

Thanks!
the interest charge calculations are correct. But the CTFS is only for 3.5 months if it will be good until end of Aug while Scotia is for 6 months. On an annual basis, CTFS 1.5% for 3.5 months = 5.14% per year while Scotia 1.95% for 6 months = 3.9% per year. Of course you can use the CTFS until it expires, them move to Scotia for the rest of the 6 months period.
Deal Fanatic
User avatar
Dec 27, 2009
7559 posts
4897 upvotes
Victoria, BC
Those are pretty shitty offers really. I have one currently from CIBC for 0% for 10 months, 1% transfer fee. I couldn't be bothered even with that, but I guess if I had high interest CC debt I might have considered it.
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