Plan 1 student loan

Lamy_2

If you have the money would you repay this? The interest rate on it is 0.9% and I know you can get marginally higher savings rates but then any other savings aren't capitalising on those slightly higher rates.

What would you do? Would you repay it if you could?

Oasis1

Nope. You can get interest rates of around 5% in some current accounts - better to put your money there than pay back these loans. See article: http://www.moneysavingexpert.com/students/student-loans-repay

Lamy_2

Oasis1 wrote: »

Nope. You can get interest rates of around 5% in some current accounts - better to put your money there than pay back these loans. See article:

But it's then at the expense of other money getting those interest rates. You can't have a whole heap of savings if that makes sense?

Ed-1

Lamy wrote: »

If you have the money would you repay this? The interest rate on it is 0.9% and I know you can get marginally higher savings rates but then any other savings aren't capitalising on those slightly higher rates.

What would you do? Would you repay it if you could?

Actually the rate on it is 1.25% but in the same ball park. 0.9% ended last September.

Would you want to pay a tax early that you might not end up having to pay at all? That's the question I'd be asking myself.