My wife and I have a little left to pay off on our Student Loans which are locked to the retail price index at 3.2%, so almost free money as I have thought of them up to now.

However, are we better paying them off now since the rate on deposits are not massively higher and we'd be liable to tax on those anyway? Haven't done cash ISAs this year as didn't want to prevent doing shares ISAs, and didn't want to leap straight in with shares ISAs as the performance over the last several years has been crap, even recent growth has not recovered our earlier losses quite yet. Not a good argument!??

So, pay off the 3.2% loans or do something else? The do nothing option is to put it in I&G Direct.

 

pay it off unless its HUGE.....even if you get an extra % on your savings (net) is it worth it?

K.I.S.S

 

hi, pay it off, unless you've any other loans, credit/store card bills or overdraft at a higher %.

do you have a morgage it could go towards instead, taking into account penalties etc?

cheers matt

 

Thanks. Everything else has gone