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Loan to put in saving account
Comments
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Would you do them again please, this time using the correct figure of £3,750.enthusiasticsaver wrote: »I have done the sums for you.
How do you get that figure? The correct figure is a very low circa £134 at 3.3% APR.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.0 -
So not worth the hassle!0
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YorkshireBoy wrote: »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?0 -
Definitely a non starter then. Yes I forgot about the monthly repayments.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Save £12k in 2026 Challenge £12000/£2000
365 day 1p Challenge 2026 £667.95/£165
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php0 -
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.0 -
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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.0 -
Bartoszborowiak wrote: »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!0
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