Paying loan off, best way to earn £££

cornz

I have a bank loan which I have been paying off and am now down to 7k left.


I have come into a bit of money, enough to pay the loan off outright but the bank wont give me any discount for paying it off early. So I was thinking to put the money into a high interest account and then just leaving it to pay the monthly loan payment off whilst earning some interest. What would be the most beneficial way for me to do this???

PeacefulWaters

You'll earn less interest than the rebate will save you.

Pay down the debt.

ChopperST

What to do all depends on the APR on the loan and your tax status.

Eco_Miser

When you say the bank won't give you a discount, do you mean that they want all the interest you would have paid if the loan went to term? If so put the money elsewhere.
If not, calculate the interest you could save by paying it off, and the net interest you could earn in current accounts, then do whichever gives the bigger amount.