Spare student loan money..

[Megahurtz400]

Half of it in an account to start a house deposit, DO NOT EVER TOUCH THIS EVER!

Other half use to go travelling and see the world!

But honestly, one would assume (Uni age, student loan, correct me if i'm wrong though) you're under 21.

Im 23 next week, and have been travelling around Europe and spent a year in Australia, but one thing I wish I had now was a place of my own

I don't want to rent as it is dead money, and if I had managed my finances better when I was younger (Didn't go to uni) I could be in a position to be getting a 1/2 bed flat to call my own now.

But also travelling was AWESOME and I highly recommend it to everyone, just don't have a complete YOLO attitude, always plan things out for when you get back or a few years down the line as it'll make thins 10x easier!

 

[Richie]

TSB 5% Account - £2000
Nationwide 5% Account - £2500

You dont need any DD's to run them. You need to put £500/month into TSB and £1000/month into the Nationwide but you can just set up a standing order between each to cycle £1000 from TSB into N/Wide and then back again on the same day.

You dont get any interest above the £2000/£2500 so if you are at the limits then just cream the interest off each month and put it into another account somewhere.

 

[Salsa]

Safe high interest savings account for a house deposit in ~6 or so years
Medium risk high interest savings account & funds/shares for a house deposit in ~6years or so years
High risk funds/shares for a house deposit in ~6years or so years

And any extra money keep adding to it, and when you start work put a little money in every month.
You think it's not worth it, but so many people, myself included regret not doing it. Even £50 a month is better than nothing. It soon adds up by your late 20s.

This!

I did the same and am now looking to buy my first place with a c.30-40% deposit...

/Salsa

 

[Ryan-3]

Student loan money left over?

You're doing it wrong ............

This. Even with living at home, I sometimes wonder where it goes.

 

[holymonk]

Buy a car

 

[Amp34]

http://www.moneysavingexpert.com/savings/best-cash-isa

Or if you are happy with a bit more risk look into a stocks and shares isa and stick it in a fund with a good reputation.

Don't give it back, unless you're paying more interest in the loan than the savings return...

 

[delta0]

Save it for a house.

 

[Luckystrike123]

I'm going hoping to go to uni in september and I've been thinking of utilising the maintenance loan for my financial gain.

The wife earns enough to support both of us and we currently own our own house (100k mortgage), so gave been thinking about using the loan to overpay the mortgage or find some scheme / account that will pay a high rate of interest.

 

[arknor]

send it back!

 

[Hades]

Zopa

 

[DJMK4]

House deposit savings

Giving it back would be stupid

 

[OpenToSuggestions]

Towards house deposit.
If you are the sort of person who cannot save it for a house deposit then repay it.

When you're 45 and repaying your loan you will regret it if you blew it on cars, coke and hookers.

 

[HangTime]

have been travelling around Europe and spent a year in Australia, but one thing I wish I had now was a place of my own

I don't want to rent as it is dead money

All else being equal (e.g. property value), renting is no more dead money than interest on mortgage repayments and travelling is just as much 'dead money'. Paying money for a roof over your head in the UK is no more wasted than paying money to put a roof over your head while travelling.

Back OT, I would just invest it in the product most suitable for you i.e. depending on your appetite for risk and whether you think you will need access to the money in the near future.

 

[Chives]

Cheers for all the replies, much appreciated. I went to TSB today and opened one of those 5% accounts and I will open another similar account in due course. Should make a nice little bit of interest hopefully

 

[Westyfield2]

Good call. ISAs for house deposits is what a couple of friends in my year did .

 

[trigger-happy]

Pay it off your student loan?

Don't think you can pay it off directly. It comes from a small percentage of your wages.

 

[Hxc]

Don't think you can pay it off directly. It comes from a small percentage of your wages.

You certainly can if you want to. You shouldn't, mind.

 

[misteranonimous]

I am in the same position as you, OP, except I didn't use any of my student loan since I managed to work part time and do my undergrad.

So as a result, there's 20k or so sitting in the high interest savings account ready to contribute towards the deposit for my first house, whenever that may be.

 

[Harl0]

Invest it in a proven fund.

 

[dowie]

Save it... some people get a bit irrational about debt and take the default position that it should be avoided - tis more useful if you've got assets which are increasing in value faster than that debt.

Ditto to mortgages, the standard advice is to pay off ASAP, with rates at the mo they're similar to student loans... my mortgage is less than 2%, I don't see any reason to make overpayments - better to invest any excess salary/bonuses.