student loan + £10k! what to do!?!?!?

freak_in_cage

OllieLong wrote:

The Lloyds one is over two years though compared to the one year of A&L.

hmmm, 8% over 2 years or 12% over 1 yr. already have an A & L account, but i cant make any withdrawls. also, as its for £5k and above, in april when i open a new ISA i will have to close the account down and transfer it to Lloyds, so i reckon its better to stick with Lloyds from the beginning.

ok, so lets get this straight.

1) £12K at 2.5% = £300 interest


£13 savings/inheritace - £1000 overdraft pament = £12k to save

1) £3k into ISA = £9k

2) Open Up Lloyds TSB’s Monthly Saver @ 8% with £500 = £8.5k

3) Place £8.5k into A & L Saver @ 5.38%

4) Transfer £250/month from A & L A/C to Lloyds Monthly Saver @ 8%

5) April 07 balance £6k in A & L. Open New ISA with £3k, balance now £3k therefore transfer into Icelandic A/C (min £5k for A & L)

6) this leaves 1 yr of transfers into Lloyds at £250/month

some really rough calculations:

Assuming im getting 5.4% on my £12 savings (lower interest on ISAs but its tax free, and considering extra interest of regular saver a bonus) im getting approx £650, -20% tax (approx) = £520!

Basically £220 a year better off, although if i could be bothered to do the nasty calculations expect its really around the £280 better off than just whiping the student loan! :j