Dumb question probably... FD Offset, why would you ever overpay?

Gorgeous_George

No need to overpay. Saving has the same effect.

GG

Temrael

Ahh cool, thanks for that, that'll work perfectly for us then. :T

Jonbvn

dimbo61 wrote: »

£16K is still a very good emergency fund and a pot you can dip into when needed to pay for the new car/holiday/new kitchen ETC

Don't agree. It really depends on your circumstances. Better to adopt the 3 to 6 months of income approach, rather than an absolute figure.

getmore4less

Benifits limit can be a red herrng since is ony apples in some cases.

If you have other invstments(ouside pension they don't count) or partner that is working or likely to get big redundancy, then might as wlll make the savings pot as big as needed.

I prefer the x months expences for the disaster pot rather than the fixed amount or x month income.

Barclays are one lender that allow cash ISA's in the offset account pool. Currently their product are not as good as FD.


Offset/overpay no differnce on the cost net borrowing is what you pay interest on.

Borrowing more than you need gives you a pot to invest elsewhere when rates are in your favour. There are a few monthly savers out there tht can make a few £.

Also seek out the 0% Credit cards for the Stooze,
0% purchase are great way to get some temporary offset funds,
0% Ballance transfer cards are harder to find since most have fees these days.