saving tips - help

Sanele

Is it possible to get a loan with a very low interests and save that money on a savings acc with a very high interests, then pay monthly loan instalments with monthly savings interests and save the remainder.

jo_b_2

Sanele wrote: »

Is it possible to get a loan with a very low interests and save that money on a savings acc with a very high interests, then pay monthly loan instalments with monthly savings interests and save the remainder.

The theory behind your suggestion is fine but the reality is that interest rates are very low so you're not likely to find many savings accounts with very high interest rates in the current financial climate.

Many people do a similar thing with credit cards. They build up a balance with a 0% interest rate and then save the money in a savings account. The popular term for this is 'stoozing' and there is an entire board on MSE dedicated to stoozing which might give you some more ideas and advice HERE.

jack705

Is it possible to get a loan with a very low interests and save that money on a savings acc with a very high interests, then pay monthly loan instalments with monthly savings interests and save the remainder.

angon23annie

Yeah, a bank is a business. They won't keep your money if they would have no penny to earn. If you really want to earn a lot, invest on something else.