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Savings rate higher than Loans interest
himalshelat
Posts: 23 Forumite
HSBC offers a loan at 3.9%
I had recently spotted FCNR fixed deposit account for People of Indian origin paying interest of 4.48% on GBP deposits.
If you are eligible for the two accounts is there any reason to not take the maximum loan and put it in the deposit account? Are there any legal issues ?
Are there any cheaper loans out there ?
I had recently spotted FCNR fixed deposit account for People of Indian origin paying interest of 4.48% on GBP deposits.
If you are eligible for the two accounts is there any reason to not take the maximum loan and put it in the deposit account? Are there any legal issues ?
Are there any cheaper loans out there ?
0
Comments
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The interest on the deposit account is possibly taxable, which would scupper the idea upfront, and you also need to consider that many people will not get the headline loan rate.0
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Several...one of which is you'll lose money, regardless of your tax situation. And the more you borrow, the more you'll lose! Reason?...the loan requires a monthly payment, and this is money you could otherwise have saved at up to 6% AER in this country (coincidentally with the same bank you're considering borrowing money from).himalshelat wrote: »...is there any reason to not take the maximum loan and put it in the deposit account?
The cheapest one I know of is 0% for 12 months.Are there any cheaper loans out there ?
See here...
http://forums.moneysavingexpert.com/showpost.php?p=66621903&postcount=70 -
himalshelat wrote: »HSBC offers a loan at 3.9%
I had recently spotted FCNR fixed deposit account for People of Indian origin paying interest of 4.48% on GBP deposits.
If you are eligible for the two accounts is there any reason to not take the maximum loan and put it in the deposit account? Are there any legal issues ?
Are there any cheaper loans out there ?
Which Bank did u check FCNR?What happens if you push this button?0
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