Continue to save or pay off loan

[GoldDigga]

I currently have an SSIP with B.O.I Life due to mature in April 07. The value of the policy should be worth about 13k. I have a personal loan which will have 11k remaining in April 07.
I can continue recieving the 25% I have been getting from the government from BOI Life for a further 6 months if I continue with the policy which will now be an SPIP for a further 3 years.
Should I cash in the policy and use it to pay off my loan or continue with it to avail of the 25% bonus?

 

[Howitzer]

Pay off the loan. I believe that BOI product requires you to leave the cash in the account for a further 3 years so the 25% bonus on your first 6 months savings turns into a much more measly compounded return over the longer period. Almost certainly less than the anmount which you'll be paying in interest on your 11K loan.

Banks love savers with large loans as it allows them to keep their loan to savings ratios very high at no cost to them.

 

[GoldDigga]

Thanks Howitzer
Any recommendations on good funds to invest in going forward? I currently pay 254 into my SSIP and 530 Off my loan per month.
So thats an extra 784 Euro month I will have to play around with come next april.If i dont continue saving again immediately I am likely to slip back into the habit of spending it all as I get it

 

[Howitzer]

Anything with low charges (zero) and easy withdrawal. If you're unsure there's nothing wrong with cash accounts untill you see something that suits your investment needs. The Best Buys section probably contains a definitive listing. I hear good things about a number of Rabobank funds, both in terms of their performance and their low charges, though I've no experience of them myself.

I don't really see much difference between the rates on offer between all the banks, .25% on a monthly saving scheme really doesn't amount to much, especially if you're getting charged to transfer money from one account to another. Just be sure to avoid fads that charge you sky high fees.