how could this be a money maker?

lukeylukeluke

Take a 5.9% asda-loan out and put it into the lloyds tsb 8% savings account (for example)... obviously its not as black and white as this (taxes/repayments etc) but is their a profit to be made from taking out a loan and putting it into a savings acc?

PS, im already aware of stoozing thanks in advance!

tom188

short answer is no

Lloyds account is a regular saver, so you cant put a lump sum in.
If you are a tax payer you will have to consider the net figures.

There is nothing on the market at the moment that would allow you to turn a profit from the loan.

lukeylukeluke

'if' i am a tax payer? you mean I have a choice?!

tom188

people who earn less than £5225 p.a. are non tax payers.
the starting rate of 10% covers the next £2235.
these groups of people would find it easier to turn a profit in this situation.

hence my distinction.

CLAPTON

what calculation have you done?

lauren_1

I thought the 10% tax rate was done away with at the last budget?

tom188

yes, from april 2008

roswell

Your lump sum will be reducing each month by the amount of the monthly payment as well as you cant put a lump sum in only £250 a month so nope no money to be made really