general savings vs loans interest question...

galwaytt

Registered User
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571
Just a general question, before battening down the hatches, so to speak....

Given a situation where you have mortgage(s) on the one hand, but savings on the other, and now that mortgage(s) are going up, is it more prudent to use the savings to reduce the mortgage principal, to keep payments smaller, rather than keep them as savings, separately, elsehwhere. IOW, is there a net gain by keeping the deposit.........on deposit, vs simply reducing the borrowings... ?

I see KBC are offering a withdraw-able offset, which I could put the savings into, so maybe that's the best of both worlds ?

Yours, confused...........
 
It all depends on what your borrowing rate is. What rate are you paying?

What savings rate are KBC offering for their offset product? KBC have very low savings rates in general.
 
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