Should I move my savings from Offset Mortgage (AER 1.89) and invest elsewhere?

I wish I could say I am good at managing my finances but the truth is that I have been extremely lucky.
In April I was able to get a 5 years fixed 1.89% EAR Offset Mortgage.
I have really been lucky, it is crazy to think that people out there is actually going to have life changing consequences of these days' mess.

I am considering to get my savings from the offset mortgage and investing them in different products and alternatives but I have some blanks I would like to fill in.
First of all it is the AER comparison that confuses me.
I don't know if the AER really applies for the offset mortgage as the way I tried to calculate the interest I was supposed to pay in some month installment, didn't actually work well.
If the EAR is just "EAR" then a linear comparison is possible for ISAs, where interests are not taxed, for all other products I would need to take it into account, meaning 40% above £500.

A few examples:

Barclays offers 5% AER on up to £5000, £250 a year, interests paid at the end of the year (Still under 500£ tax free)
Mortgage 1.89%, £5000 with interests paid every month would give me a total saving of £94.5
> Moving the money would grant me £155.5 a year

Cynergy Bank 3 years fixed rate bond 4.60% AER, moving £50.000 would give £6900 over 3 years
Mortgage 1.89%, £50.000 with interest paid every month would give me a total saving of £2835
> Moving the money would grant me £4065 in 3 years

Was I right?
Can I use a likewise comparison using the AER then?

Thank you very much.

Comments

  • You should post in the mortgage forum for advice, this is for advice on making money from credit cards
  • surreysaver
    surreysaver Posts: 3,986
    Name Dropper First Anniversary First Post
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    You should post in the mortgage forum for advice, this is for advice on making money from credit cards
    Borrowing money from a flexible mortgage is more or less the same thing. The same people will haunt this forum
    I consider myself to be a male feminist. Is that allowed?
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