Losing Money on Unused Maintenance Loan (Due to lower Interest Rates)

alex_pi

I got my maintenance loan last year and didn't use any of it so I just put it in a high interest savings account, i planned on doing the same this year but due to the Bank of England helping those without money and screwing over those who were sensible enough to save, I am now losing money...

Would it make sense to pay it all back and cancel any further maintenance loans or should I keep it because it is still cheap money and it may come in handy in the future??

Thanks

Alex

rb10

If you're sure you won't need to have access to the money, you could put it in a fixed rate savings account. This way, you'll be guaranteed the interest rate for the term of the account. There's a list on this site here: http://www.moneysavingexpert.com/savings/fixed-rate-savings , and Halifax have some good ones here: http://www.halifax.co.uk/savings/fixedwebsaver.asp and here: http://www.halifax.co.uk/savings/guaranteed_reserve.asp .

You can easily get a rate from one of these that is above the 3.8% Student Loan interest rate.