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If i can get interest rate higher than my mortgage should i overpay or save?
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AdventureRocks
Posts: 177 Forumite

my mortgage is .14% and Santander have a 3% current account (ignoring tax as it will be going in a few months).
So would this mean i am only paying 0.14% on my mortgage loan so it is better to save the money and earn interest because it is a very very cheap loan?
Any help appreciated as always
Thank you
So would this mean i am only paying 0.14% on my mortgage loan so it is better to save the money and earn interest because it is a very very cheap loan?
Any help appreciated as always
Thank you
0
Comments
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Santander 123 account is way down the list of the best interest paying current accounts.0
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ceredigion wrote: »Santander 123 account is way down the list of the best interest paying current accounts.
Bu most have a lower cap than £20k so will only pay interest up to 3k for example..0 -
AdventureRocks wrote: »Bu most have a lower cap than £20k so will only pay interest up to 3k for example..
who said you can only have one0 -
San only pays 3% on +3k and it is only 2.6% really0
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ceredigion wrote: »who said you can only have one
I guess but they all need two direct debits coming out i only have two :rotfl:i will look into it though0 -
ceredigion wrote: »San only pays 3% on +3k and it is only 2.6% really
when the new tax rules come in i will be 3% though.
is my logic right that i would only have a loan for 0.14% in effect as i am offsetting i against the interest earnt in the current account?
thank you very much for all your help :beer:0 -
AdventureRocks wrote: »I guess but they all need two direct debits coming out i only have two :rotfl:i will look into it though
With regard to DD's, they don't ALL need some, and if you are cute it is possible to pay yourself By a DD.0 -
AdventureRocks wrote: »when the new tax rules come in i will be 3% though.
is my logic right that i would only have a loan for 0.14% in effect as i am offsetting i against the interest earnt in the current account?
thank you very much for all your help :beer:
When you take the £5 per month fee (san123) in to account the return on 20k is 2.6%.0 -
Thanks very much forgot to include the £5 in the calculations.0
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this site here very easily shows you what mix of current accounts to get (and how many DDs are needed if any) to maximise interest.0
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