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Reward Current Accounts and Student Loan repayments

AdaGashau
by AdaGashau 22 February 2010  |  Comments 2 comments  |  Love Love  0 loves

Hi All,

2 quick questions:

1. Is it possible to open Reward Current Accounts in my name in *both* Halifax and Bank of Scotland?

Or do they not function independently as far as rewards are concerned?

2. My student loan amounts to approx £15,000. The Student Loans Company's interest rat is 0% until Sept 2010.

Do I:

a) Pay as much as possible off, in installments, over the next few months; which I think is the better thing to do (Thankfully, I should be in the position to pay it all back by Sept)

or

b) Put the money I would have paid in installments in a savings account / bond to acquire a little bit of interest before paying it off when the interest rate rises come Sept 2010 (if it rises at all, that is); which one of my close friends thinks is the better thing to do.

Or would it not make a difference whichever one I went with?!?

Thanks

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Comments (2)

  • Swarbs
    Love rating 272
    Swarbs posted

    1. I don't think so - Halifax is only a trading name for Bank of Scotland plc, and the Bank of Scotland website refers to its current account as the "Halifax Reward Current Account" on the T&C page, which implies they are the same account. But I'm not sure.

    2. Putting the money in a savings account is the better bet. If you think you will be able to raise £15,000 in six months, you could make up to £200 on this money by putting it in a savings account, although the actual amount is likely to be closer to £100. With student loan rates at 0%, there is no benefit in paying off the loan early. And the SLC rate may still stay very low depending on how inflation is in September. You won't see a massive benefit from putting the money in a savings account, but I would say the £100 in interest gained is worth it.

    Posted on 22 February 2010 | Love Love  0 loves Report
  • MikeGG1
    Love rating 804
    MikeGG1 posted

    Even if you can only get one from HBOS, you could try Alliance & Leicester to earn 6% on the first £2,500 and Santander (Abbey) for another £2,500. They don't officially join up until October.

    There is no point paying off a 0% loan if you don't have to. Anything saved would be better. Try Coventry BS 1st Class Postal A/c @3.15% instant access, once the £5,000 above is filled.

    Mike

    Posted on 22 February 2010 | Love Love  0 loves Report

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