Credit card holders could reap benefits through savvy spending

With banks now fiercely competing for our credit card, savings and current account business, householders have an opportunity to be big winners, according to research by moneysupermarket.com.

Rob Kenley, head of credit cards at moneysupermarket.com, said: "Using a credit card with a zero per cent purchase offer and investing the equivalent amount of money in a savings or current account is an extreme case of banks paying us for our business. The process of getting your hands on some of that £7.2 billion is simple.

"The average UK household spends £5,790 per quarter on goods and services, such as transport, recreation, culture, food, drink and clothing. My advice is to spend £1,930 for three months on goods and services with your card; invest £1,930 in a savings or current account at the end of each of those three months; always pay the minimum monthly balance; and clear the card balance at the end of the offer.

"In the case of a household with a 12-month card with a three per cent minimum monthly repayment and a savings account paying 6.3 per cent, you will make a £280 profit. If the UK's 25.7 million households were smart enough to do this, we would have an extra £7.2 billion to spend thanks to changing our spending habits for only three months."

The zero per cent purchase credit card is the latest trend in banking, with four providers now offering a deal of 12 months or more. There were no deals of this length a year ago.

Rob Kenley said: "Coupled with the nine banks and building societies offering 6.3 per cent or more and there is a golden opportunity for us to make a stack of cash with very little effort."