SLC money unused for 2 years - what to do?

GcDh_2

Hello fellow moneysavers!

Right, I have right royally messed up with my student loans. To cut a very long story short I've just finished my second year of university, with one year to go. I have both tuition fee loan and a maintenance loan, and it's with the maintenance loan that I'm concerned.

I took out the loan really for safekeeping, as you never know what might happen, but I'm rubbish with money issues and so the c£6000 that has steadily been paid into the account is just lying there. It's too late to get involved with Cash ISAs, but now I have absolutely no idea what to do with it, especially since I'll have to start paying it off before I know it...

What can I do with the money to earn enough to contribute (or in my wildest dreams) cover the interest it's accruing?

Thanks in advance

Lokolo

Why is an ISA too late?

JoeA81

I agree why?

Stick the first £3600 into an ISA ASAP!

And get the rest into a high interest savings account.

SuziQ

This is just the sort of problem other students can only dream of!

GcDh_2

Thanks for the replies,
Okay, okay, I admit I'm useless with money and basically have little clue about ISAs (as shown with my first comment about them)... what other people I know seem to have done is stuck their money into ISAs from the start - isn't it a case of the earlier you start saving into ISAs the better... how exactly do they benefit?

Thanks again

Blacksheep1979

I've got some magic beans if you want...

Masomnia

GcDh wrote: »

Thanks for the replies,
Okay, okay, I admit I'm useless with money and basically have little clue about ISAs (as shown with my first comment about them)... what other people I know seem to have done is stuck their money into ISAs from the start - isn't it a case of the earlier you start saving into ISAs the better... how exactly do they benefit?

Thanks again

I can't think of a case where starting saving earlier isn't helpful - but it's never too late!

ISAs have their interest paid to you tax free. Now I don't know whether you pay tax now, but I'm guessing you will in the future. So, if you start saving the money in an ISA now you'll have a nice nest egg accruing interest tax free a few years down the line when you are paying tax.

You'd have benefitted slightly by starting before this April, as you can only put £3,600 in per tax year (£3,000 last year), but in the grand scheme of things it won't matter. Seriously it's never too late.