Barclays Reserve account

Robbie726

I have a Barclays Reserve account and my current mortgage interest rate is 1.25% its a Tracker 0.75% above bank of england base rate.

I have a Reserve account of £27000, my question would it be a safe/sensible idea to take this £27000 and put it in a savings account and as long as the savings rate is more than 1.25% because that is the rate Barclays would charge me for borrowing it. I would be making money. Are there any dangers involved with this.

Thanks

cash-magnet

Makes perfect sense so long as you are not tempted to spend it and can transfer it back again without penalty when the rate differential changes to a less favourable position. Smart move, assuming you have taken in to consideration that any savings account you will use pays more than 1.25% AFTER the 20% tax has been removed, or worst, 40% if you are a higher rate tax payer?