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Can you put loan money into a savings account until needed?

Hello all,

We are wanting to take out a personal loan for home improvements, and have been offered a good rate. However, we do not have a definite start date for works from our builder yet (it will be in the next few months). Is there any reason why we couldn't take the loan out and put the money into a savings account until needed?

Thanks in advance!

Comments

  • nb0825
    nb0825 Posts: 115 Forumite
    Yes its the same as stoozing credit cards. As long as the interest on savings is greater than the APR on the loan
  • 19lottie82
    19lottie82 Posts: 6,033 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    nb0825 wrote: »
    Yes its the same as stoozing credit cards. As long as the interest on savings is greater than the APR on the loan


    I don't think the OP is asking whether it's profitable. Currently it's unlikely to get a bank account APR higher than a loan APR.

    They are asking if the potential lender will have any issue with them putting the money into a savings account, rather than using it for the intended (stated on the loan application) straight away.

    And OP, that's fine, no need to worry.
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