Zero to £25,000

Savealotmore1

Hi,

I'm a first time poster here looking for some savings and investments advice. I recently got a 0% interest loan for £25000. I'd like to repay this as quickly as possible to the couple who lent me the money. I am looking for advice regarding the best zero to very low risk savings and investments options available to someone who will be saving £150 a month until the loan can be repaid in full. I have had a look at regular savings accounts and think that is my best option but wanted to get advice from other moneysavers before I decide.

Many thanks in anticipation of your help.

AnotherJoe

Regular savings accounts plus some higher interest current accounts, as you thought. You are on a ten+ year mission though.

george4064

As you have borrowed the money, you should take no risk with it and put it in bank deposits. There are various regular saving/current accounts/savings accounts you can take advantage, the return you will get is dependent on how much effort you are willing to put in.

Check out the 'Quick Links' near the top of the forum window.

JimReynolds

Can I ask why you borrowed the money for originally, as this makes a difference in how you pay it back.

Eco_Miser

Why not repay £150 a month direct to the couple?

AnotherJoe

Eco_Miser wrote: »

Why not repay £150 a month direct to the couple?

That would take longer.

HappyHarry

AnotherJoe wrote: »

That would take longer.

But it would cost the couple less.

Pincher

NS&I Premium Bond.

I don't understand why you don't just give the money back.
You borrowed the money without knowing why?

jennyjj

Savealotmore1 wrote: »

Hi,

I'm a first time poster here looking for some savings and investments advice.

Welcome to the forum.

I recently got a 0% interest loan for £25000. I'd like to repay this as quickly as possible to the couple who lent me the money. I am looking for advice regarding the best zero to very low risk savings and investments options available to someone who will be saving £150 a month until the loan can be repaid in full. I have had a look at regular savings accounts and think that is my best option but wanted to get advice from other moneysavers before I decide.

Many thanks in anticipation of your help.

Here's the thing.... Did you borrow the money, purchase something with it and now propose to pay back out of £150 per month of your available income? Or did you borrow the money and have the money and a plan to pay it back.
The latter would make no sense, because simple answer is pay it back in one lump.
So, you have £150 per month available to pay them back? Pay them £150 per month. Simple. You are doing them no favours by trying to invest the money. Why should you benefit from any interest achieved? If you are really earnest about wanting to pay it back, increase your occasional payments as and when you can. They can then benefit from their own money either by investing it or dining out on it.
They are really generous friends to have given you this loan. You are beholden to them to pay back at a decent schedule, which hopefully you have pre-agreed with them.
To try to invest the £150 to get interest with which to pay part of the loan strikes me as sly and mean spirited.

Sceptic001

Inflation is rising. Pay them back as soon as possible.

jennyjj

Sceptic001 wrote: »

Inflation is rising. Pay them back as soon as possible.

£25,000/150/12 near as dammit 14 years. Maybe if you invest it at £150 a month and don't pay them back until you have accumulated the whole £25,000 . . maybe with a bit of interest, you'll find yourself handing them £25,000 in only 10 years time. But at that time, because of inflation, maybe that £25,000 will be just enough to buy them a wet weekend in Skegness and a meal at the pub.
Far, far better to pay them back as and when you have surplus money to do so.