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Loans

sjh101
sjh101 Posts: 173 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Loans
Hi

I already have some savings, but would like to know, are you allowed to get out a loan to put into my savings account to make interest and then just pay it back monthly out of my normal bank account.?

Also, is there anywhere that lends £500 and lets you pay £10 a week back?

Thanks

Comments

  • Common_Sense_2
    Common_Sense_2 Posts: 415 Forumite
    in short yes, in long why? you surely won't get a higher interest rate on your savings compared to what you would be charged on your loan so you will still be out of pocket.
    We've spent decades teaching people about their rights, but nothing about their responsibilities.
  • redpete
    redpete Posts: 4,703 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 9 September 2010 at 4:10PM
    sjh101 wrote: »
    are you allowed to get out a loan to put into my savings account to make interest and then just pay it back monthly out of my normal bank account.?

    Of course you are allowed to but if a lender charged low enough interest so that people could make money by putting the money into a normal savings account they wouldn't be in business for very long.

    (Well, CC companies did this with 0% fee 0% interest balance transfers, but those deals don't exist any more.)
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • CHR15
    CHR15 Posts: 5,193 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Whoever this loan company is which is offering you less interest than your savings account, please tell us who

    Crazy idea
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