What to do with £4k

freddysmith

Just imagine if you could borrow money from the bank at 1.5% APR :beer:

Personally (and repeating the above statement) if I had some rainy day money already I would consider paying or reducing the loan. You would have to read the terms and conditions of the loan to make sure that repaying early does not incure fees.

Definately have a second look at the loan APR interest rate

a7man

I'd quit my job this afternoon and go to every bank for a loan!

anandp

Hi ronniet,

Your next steps should be:

1) Confirm the rate on the loan because as others on here have said, the rate of 1-1.5% seems unlikely.
If its anything above say 4-5%, then best thing financially to do would be to put all the money into that and pay as much of it off as possible.

2) If the rate is indeed 1-1.5%, or you still have some cash over after having paid it off, you should put it into an Instant Access ISA so you can have immediate access to your money when you need it.

If you're happy to lock the money away for a few years, then other options may be better for you - such as Zopa.com, where you get a good return in the current economic environment. From the sounds of your note, you'll probably need help with this if you decide to go down this route.

Hope that helps

Anand