bflaminio

bflaminio t1_jefvvxj wrote

> Needs 7k. Offered to pay back 1k per month for 10 months.

That's an absolutely usurious interest rate. No way would I charge that to a "friend", or even an enemy.

> Should I take a loan asking for $10.6k back after interest/fees (over 24 months) or use my emergency fund?

Neither. Don't borrow money to lend it out, and don't dip into your e-fund. If you don't have enough extra cash on hand to make this loan, don't do it.

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bflaminio t1_j6ni4xc wrote

There are advantages beyond monetary for doing so. I use Schwab Bank for most of my banking, and it is linked to my Schwab Brokerage account. My e-fund sits in the brokerage account, invested in a money market fund. It doesn't pay quite as much as the better HYSAs, but if I need to make an emergency payment it's simple to transfer money between the two accounts.

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bflaminio t1_j6ngtkm wrote

Do the math on how much you really will make at Ally vs Chase (based on how long you expect to keep money there and how much money you will be keeping on deposit). That will give you a fairly solid number with which you can decide if it is worth the convenience of having everything at Chase vs the extra money you would get at Ally.

1