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Moving abroad, not sure what to do with cash savings/student loan

Hi,

I'm relocating to the to mainland Europe in a month or so, and want to tidy up my financials before I move.

I have around £6500 split between £3600 in a cash isa (3.5%) and the rest in a instant access RBS saver. My only debt is my student loan, clocking in around £11k.

Basic question, what should I do with my cash?

I was thinking of sticking what isn't in the isa into the inflation linked NS&I scheme, would that be a good idea? I don't mind locking some cash away for a few years, what riskier options are out there?

I was also planning on just paying back my student loan at the usal 9% of salary from abroad, what are pro/cons of this?

Any help/advice ect from you clever people would be very much appreciated.

Comments

  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    When you go abroad you have to tell Student Loans and they set up a DD to automatically take money from you.

    You might want to work out how much you'll be paying from that first.

    http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansCoursesStartingFrom1998/DG_10034872

    See here.
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    GoldyLost wrote: »
    £3600 in a cash isa (3.5%)

    Whilst you can continue to hold the ISA you aren't able to add to it. In theory you can transfer it to another provider ...... but, in practice, you will find it very difficult, if not impossible, to get another provider to accept it with an abroad address.

    So you may wish to ask your existing provider if they will let you move it internally when the rate declines - otherwise (3.5% sounds like a fixed rate?) you are likely to finish earning 0.1%. Alternative is to move it to the longest term fix (likely 4 years) you can find at the moment (if the current one is moveable - even at reasonable penalty)?
    If you want to test the depth of the water .........don't use both feet !
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 19 May 2010 at 4:30PM
    GoldyLost,
    NSI IL are a good home for your money, should even consider putting your Cash ISA pot in there as well.
    They are *interest free, can be held overseas, and by non UK citizens.

    Best of fortune.

    *Edit, make that tax free.
  • Cook_County
    Cook_County Posts: 3,087 Forumite
    Part of the Furniture 1,000 Posts
    Your new country of residence will doubtless tax the ISA & N S & I product. You may want something that is tax efficient there, not here.
  • GoldyLost
    GoldyLost Posts: 4 Newbie
    edited 20 May 2010 at 11:24AM
    Thanks for the help guys, lots of points I didn't consider.

    The ISA is with santander/I&L, the rate will drop at the end of this tax year, must look into this.

    I didn't think on getting taxed on my savings from abroad (Netherlands), I will look into this as well.

    Would it be worth using some savings to take a chunk out of the student loan? The interest rate is set to raise come September.
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    GoldyLost wrote: »
    Would it be worth using some savings to take a chunk out of the student loan? The interest rate is set to raise come September.

    It will if it goes up to 4.4% ........ but it could be lower (see this article) :-

    http://www.moneysavingexpert.com/loans/student-loans-repay

    I would leave it a while before making the decision ...... at least until after the emergency Budget 22nd June when the way forward (and on rates in general) may be a little clearer.
    If you want to test the depth of the water .........don't use both feet !
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