If you’re interested in making money with 0% balance transfers, but have been sitting on the sidelines due to generally low interest rates, then check this out…
WaMu is currently offering 5% APY on their 12 month online CDs. This beats the best available online savings account interest rates by a long shot, and creates a fairly generous interest rate spread (i.e., you’ll borrow at 0% and pocket 5%).
Because these are 12 month CDs, you might want to look for a 15 month 0% balance transfer offer just to be on the safe side. That way, you’ll definitely have the capital back in your hands before the 0% introductory period runs out.
A word of caution… Just be sure that you have sufficient cash flow to handle the minimum payments throughout the year. These typically run in the neighborhood of 2% of the outstanding balance per month. Alternatively, you can hold back some of the balance transfer funds in a regular bank account to cover the minimum payments instead of tying up the full amount in a CD.
Oh, and I should also note that I’ve heard from several readers that funding these CDs from sources outside of WaMu can be tricky, so it might be best to go ahead and open an account before pulling the trigger on this deal.