You pay the interest on the loan back into your account. You are borrowing from yourself, and your paying it back plus the interest. I believe the current rate is about 4.65%.
Ok so I know its not usually a very good idea to ever take out a loan for several reasons. There may even be a few good reason to do so given different invest reasons(real estate). But for me its some thing I dont ever plan on doing again. However I pulled out a small loan to pay the reamaining cost of a wedding. Is the 4% interest paid to our account or does the tsp(gov) get it? I wasnt for sure so I thought I would ask. Thanks and many props to this site and those that participate. I am learning allot.
Pill
You pay the interest on the loan back into your account. You are borrowing from yourself, and your paying it back plus the interest. I believe the current rate is about 4.65%.
The TSP gets a $50 processing fee. They do not get the interest on the loan. Your paying yourself back.
4.625% is the current rate. If you borrowed the money at 4.0% then the rate would stay the same through out the life of the loan. TSP adjust the loan rate once a month, we MAY see it changed to 4.75% in April. One thing that was pointed out earlier on this board is that the intrest that you pay back to your account is post-tax verses our pre-tax contributions.Originally Posted by EWGuy
http://tsp.gov/features/chapter11.html#sub5
http://tsp.gov/curinfo/data.html
S&P500 (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
||
Yahoo Finance Realtime TSP Fund Tracking Index Quotes |
Bookmarks