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    • Home • Advice • Common questions

    Is it worth paying off my masters loan or investing in a fund with my savings?

    07 January 2022

    Question by lucy

    Hi I have the maximum masters loan, which I understand is 6% interest. I am trying to save money now in my current job. Is it worth paying off the masters loan first or investing in a fund with my savings? Is it worth saving at all?

    Answered by Boring Money

    Hi Lucy,

    Thank you for your question.

    Tricky one this:

    It's always great to save money and keeping 3-6 months worth of outgoings aside for emergencies is sensible.

    However, at a 6% interest rate it is certainly worth paying some attention to the loan. From a purely practical view, you would need to be making 6% pa on your savings/investments to make that route worthwhile. Banks don't offer 6% and even with investments this return wouldn't be guaranteed.

    Hopefully that information helps.

    Many thanks

    Oliver

    Answered by

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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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