[billfruit]

The thing is CCs basically give a zero interest rate loan for upto 45 days. This means if you spent 1000£ through CC rather than a debit card, the 1000£ will sit in your bank account and earn interest, also 1000£ spent on the CC would have earned you reward points that could be redeemed as a statement credit. Thus in effect by using CC, one would have spend less for the same transaction.

Also taking credit and closing them in time with CC could boost one's credit score, which may be useful in the future ocassion when one requires a bank loan.

Is that not sane personal finance advice?

[Swizec]

> the 1000£ will sit in your bank account and earn interest

You typically use a non-savings account to back a credit card. 0% interest

Most savings accounts give in the area of 0.01% interest.

While you’re right in general that you’d wanna use credit and keep cash for many things, a typical CC transaction is too small for this to be worth considering.

Use a CC for the points and pay it off every month. Forget the interest gains.

Make sure you don’t not pay. The interest on a CC loan will kill you. And that’s far more common for most people.

[billfruit]

I don't know your country, but in many countries banks allow savings account with reasonable interest rates to back a CC. Sometimes they provide automatic gathering up of parked funds in the savings account into a higher interest rate deposit account of even higher interest rate.