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Investing Student Loan/Overdraft
So basically I've worked out I don't need my overdraft and all of my student loan. I've worked out in january I could invest £1250, and each year add another £1250 etc, in total 3 payments, investing £3750.
I'm thinking of sticking this money in a savings account, which at a guess the interest rate would be 4-4.5%, so if compounded monthly would return about £60 for the first year, £140 the next and over £300 on the final year.
Can anyone see any glaring holes in this plan, am I overlooking something important? If not, anyone suggest a good bank or savings plan.
I'm thinking of sticking this money in a savings account, which at a guess the interest rate would be 4-4.5%, so if compounded monthly would return about £60 for the first year, £140 the next and over £300 on the final year.
Can anyone see any glaring holes in this plan, am I overlooking something important? If not, anyone suggest a good bank or savings plan.
Money Supermarket will tell you the best paying accounts around. If you're gonna save it up for years til you're earning enough to pay tax then pick an ISA, or if you're only gonna save it for a short while pick whatever pays most interest and get an R85 form so you don't pay tax (assuming you won't be earning over £4000 a year).
L.J
You do realise that inflation means you'll owe more in interest on the loan than you'll make? 
no it doesn't, inflation is at least 1(RPI)% or 2(CPI)% lower than the interest you get on savings so you still make a profit....
and as they don't charge interest on the student loan, just inflation compensating charges you gain
Current interest paid on student loan
How will the interest be worked out?
As the rate of interest is always based on inflation (Retail Prices Index as at March each year) the APR from 1st September 2005 is 3.2%. For those already repaying this will mean a small increase in the repayment amount compared to last year. The interest is calculated daily at the appropriate rate from the day your loans commences. The interest is added to your account every month.
How will the interest be worked out?
As the rate of interest is always based on inflation (Retail Prices Index as at March each year) the APR from 1st September 2005 is 3.2%. For those already repaying this will mean a small increase in the repayment amount compared to last year. The interest is calculated daily at the appropriate rate from the day your loans commences. The interest is added to your account every month.
Get yourself down to a casino mate. Legend has it one guy blew his first installment, then doubled his money with his second installment.
theisticandy
no it doesn't, inflation is at least 1(RPI)% or 2(CPI)% lower than the interest you get on savings so you still make a profit....
and as they don't charge interest on the student loan, just inflation compensating charges you gain
and as they don't charge interest on the student loan, just inflation compensating charges you gain
Hmmm do you want to re-think? You DO get charged interest on your student loan, its' not much but you definately do....!!!! It isn't free money you know - how do you think the SLC is a profiting business?
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