ISA yeilds so low.. Is it worth it for Student saving?

atush

Loan is from the govt (student finance) which is fixed to inflation as far as I know.

Sorry, I misread your post.

You do have a student loan, so my question remains- what interest do you pay? It may well be fixed to inflation or the bank rate but plus what? Inflation is as much as you can get on the best ISA so there is no point?

if you are not on the old loans (1.5% as said not sure) but the 3% or the newest 6% plus ones, then you need to not take them and spend your savings instead. Or pay them early.

No point in borrowing at 3% money you will get only 2% on.

Judder01

atush wrote: »

Sorry, I misread your post.

You do have a student loan, so my question remains- what interest do you pay? It may well be fixed to inflation or the bank rate but plus what? Inflation is as much as you can get on the best ISA so there is no point?

if you are not on the old loans (1.5% as said not sure) but the 3% or the newest 6% plus ones, then you need to not take them and spend your savings instead. Or pay them early.

No point in borrowing at 3% money you will get only 2% on.

Whilst this is true it also depends on what the OP plans to do in the future. For example, it would be pointless paying off a 3% loan now with savings and then getting a 6% mortgage in a years time for the same amout. It would be better to keep the money and avoid the mortgage (or part of it) and continue paying the 3%

atush

6% mtg? Well I guess it is possible but not likely. In any case, w/o a job and just a small amt of savings I don't see a new house next year.

But I agree, it depends on what they are paying, and even 3% is too much with today's rates IMHO.