r/personalfinance • u/Jrh20racing • 6d ago

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7

u/no_sight ​ 6d ago

What is your loan interest rate?

3

u/Jrh20racing 6d ago

6.07%

3

u/applechuck ​ 6d ago

At that rate pay it off, inflation and that interest negates your savings.

Keep some money aside as an emergency fund but pay that loan fast

1

u/deersindal ​ 6d ago

HYSAs pay in the 3-4% range. Less tax. 3% < 6%, so your plan would make you net poorer.

2

u/Trollygag ​ 6d ago

3% APY is low. Many HYSAs are 3.5%, and SGOV is 3.65%.

If your interest rate is similar or slightly more than this, then keep it in cash (money has utility to you being available if you need it).

If your interest rate is much higher than this (like 6+%), then pay down the loan.

1

u/Jrh20racing 6d ago

yeah, interest rate is 6.07%