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Loan to put in saving account

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Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I have done the sums for you.
    Would you do them again please, this time using the correct figure of £3,750.
    IF you can get a loan for £7500 at 3.3% (unsecured with no admin costs??) then it would cost you £247.50 in interest over 12 months.
    How do you get that figure? The correct figure is a very low circa £134 at 3.3% APR.
  • So not worth the hassle!
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    I think it's more your grasp of mathematics!

    Due to repayments, your average interest earning balance over the year will be £3,750. It's therefore very obvious (isn't it!?) that you'd need to earn 6.6% on the savings just to break even...and you can't do that.

    Why would you need to earn double on the savings?
  • Definitely a non starter then. Yes I forgot about the monthly repayments.
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  • I doubt it would be worth it and I doubt it is doable with the current interests? There are too many ifs as ENTHUSIASTICSAVER says!
    Only morons start a business on a loan!
    Our life is a loan received from death with sleep as the daily interest on this loan.
  • MKonrad wrote: »
    I doubt it would be worth it and I doubt it is doable with the current interests? There are too many ifs as ENTHUSIASTICSAVER says!

    Danish home page spam? Interesting...
  • The OP is right about one thing:


    "something is not right these days with interest rates"


    Indeed - and for some currencies rates are now negative - which goes against everything you were ever taught about the time value of money in O level economics!


    QE will either be viewed by posterity as the savour of the global economy, or the greatest economic folly in a generation.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    I wondering, assuming that I will get cheap loan on 3.3% for £7500 and insert that into 5%saving account both for 12months wild I get a profit of 1.7%?

    Sounds to me that something is not right these days with interest rates.

    B.

    Looks to me that something is not right these days with new posts!
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