ChatterBank0 min ago
Bank Loan
6 Answers
I have a Bank loan for which i am paying back monthly from my current account. I am shortly to receive an amount of cash from a policy that has matured. Which would be the best way to proceed, pay of the loan, with a penalty of two months interest, or put the cash in an unlimited withdrawels ISA and carry on with the monthly payments from that?
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For more on marking an answer as the "Best Answer", please visit our FAQ.Depends on which is costing more, savings to be made if loan is paid off, less two months payments, (just for final settlement terms), or interest payable on the ISA.
It has to be your choice, as you have the figures, but as most ISA's pay about a max of 3-3.6%, I'd get rid of loan, then pay your loan payments into your ISA, which would boost your ISA.
This would be because you have been paying your loan, and (not?) really having too adverse an effect on your household, then by continuing with this tack, you'll still be saving for the rainy day as well.
It has to be your choice, as you have the figures, but as most ISA's pay about a max of 3-3.6%, I'd get rid of loan, then pay your loan payments into your ISA, which would boost your ISA.
This would be because you have been paying your loan, and (not?) really having too adverse an effect on your household, then by continuing with this tack, you'll still be saving for the rainy day as well.
Which type of bank loan is that, and all the circumstances depends on the rate of interest and other mandatory features associated with the loan. When I took a payday loan from http:// month-p ayday-l oans.co m felt the mode of repaying to be really beneficial as they utilize the amount every month from my salary. For complete information, it's better to consult a financial adviser who is well-experienced in his work.