Have you ever heard the phrase, “money makes money”? It might sound like something only wealthy investors can leverage, but with the right approach, anyone can make small, guaranteed profits using everyday financial tools. One such method is leveraging a balance transfer offer to earn money through high-interest savings accounts and promotions.
Balance transfers are often marketed as a way to consolidate debt, but they can also be used creatively to generate extra income. By taking advantage of low promotional interest rates and pairing them with savings products, you can turn a seemingly routine financial product into a profit-making opportunity. This isn’t about taking on risky investments—it’s about using available resources strategically.
In this article, we’ll show you how to turn a balance transfer into an $89 profit with minimal effort and risk. We’ll walk through a real-life example step by step, so you can see how small financial optimizations can lead to surprising results.
What Is a Balance Transfer?
A balance transfer is a financial tool where you move debt from one account to another, typically to take advantage of a lower interest rate. Credit card companies often offer promotional rates—like 0% or low single digits—for a limited time to encourage people to transfer their balances. While these offers are usually targeted at people looking to reduce their debt costs, they can also be repurposed to earn a small profit by investing the transferred funds wisely.
The best part? You don’t need to already have debt to take advantage of this strategy. Instead of using the transferred funds to pay off existing balances, you can reinvest the money into high-interest savings accounts or promotional offers, where the returns outweigh the borrowing costs.
Let’s dive into how this strategy works with a specific example.
How to Turn a Balance Transfer into an $89 Profit: A Real-Life Example
Making your money work for you doesn’t always require risky investments or complex strategies. Sometimes, you can use financial products like balance transfers and savings accounts to generate a small but guaranteed profit. Let’s walk through a simple example using the table below:
The Breakdown of the Plan
| Category | Amount | Interest + Transfer Fee Rate | Duration | Interest Earned/Paid |
|---|---|---|---|---|
| Balance Transfer | $13,000 | 2.50% | 10 Months | -$270.83 |
| TD Savings (Promo) | $10,000 | Minimal | 4 Months | +$150.00 (Promo Bonus) |
| High-Interest Savings | $10,000 | 2.80% | 6 Months | +$140.00 |
| High-Interest Savings | $3,000 | 2.80% | 10 Months | +$70.00 |
| Total | +$89.17 |
How the Numbers Add Up
- Balance Transfer Costs
You start with a $13,000 balance transfer at a low promotional interest rate (and transfer fee) of 2.5% for 10 months. The cost for this transfer comes out to $270.83. However, by putting this borrowed money to work, you can cover this cost and still come out ahead. - Earning with Savings Accounts
- $3,000 in a High-Interest Savings Account: Over 10 months at 2.8%, this generates $70 in interest.
- $10,000 in TD Savings (4-Month Promo): This qualifies for a $150 bonus after 4 months. TD Promotion: https://www.td.com/ca/en/personal-banking/2025q1savings
- $10,000 in TD Savings (6 Months): After the first 4 months, the same $10,000 continues to earn interest at 2.8%, adding $140 over the remaining 6 months.
- Net Profit
Total earnings ($150 + $140 + $70) = $360 Subtract the cost of the balance transfer ($270.83), leaving you with a profit of $89.17.
Why This Works
This strategy takes advantage of:
- Low borrowing costs: The 2.5% interest rate on the balance transfer is significantly lower than the returns from savings accounts and promotions.
- Guaranteed earnings: The savings accounts and TD promotion ensure that your profits are secure, as long as you follow through on the conditions.
Key Points to Remember
- Read the Fine Print: Check for promotional requirements and ensure you can meet them within the timeframe.
- Pay Off on Time: Avoid incurring additional fees by repaying the balance transfer before the promotional period ends.
- Reinvest Wisely: Every dollar counts, so reinvesting strategically can maximize your returns.
This approach demonstrates how small, calculated moves can help you earn money with minimal effort and risk. If you have access to similar offers, why not give it a try?
Assumptions Behind This Strategy
This strategy relies on a few key assumptions about the financial products available to you. While it’s not guaranteed that everyone will have access to these exact terms, similar offers are often available with a little research. Here are the assumptions we’re working with:
- You Can Secure a Balance Transfer of $10,000 or More
Many credit card companies offer balance transfer promotions that allow you to transfer significant amounts of money. For this strategy, we’re assuming you can transfer at least $10,000. Some cards allow even higher limits, which can increase your potential returns. - Low Interest and Fees on the Balance Transfer
The total cost of the balance transfer—combining both the promotional interest rate and the upfront transfer fee—should not exceed 3.5% annually. For example:- A typical offer might charge a 2.5% promotional rate on the transferred amount for 10 months.
- Additionally, the transfer fee (often a flat percentage of the transferred balance) should be low enough to keep the overall cost below 3.5%.
- You Can Repay the Transfer on Time
The success of this strategy hinges on your ability to repay the full balance before the promotional period ends. Failing to do so could result in higher interest rates, which would eliminate your profits and potentially cost you money. - Access to High-Interest Savings Accounts and Promotions
To generate a profit, you need to reinvest the transferred funds in savings accounts or promotional offers with returns that exceed the cost of the balance transfer. For this example:- A high-interest savings account with an annual rate of 2.8%.
- A promotional savings account that offers a bonus (e.g., $150) for meeting certain deposit requirements.
If you can meet these assumptions, you’re in an excellent position to turn a balance transfer into a small but guaranteed profit.
TD Promotion Offer Details https://www.td.com/ca/en/personal-banking/2025q1savings