Making money from interest free loans

The ODT has a story of a student who made free money from his interest free loans. Now there were bank loans, not the government , but the principle is the same in terms of highlighting why it is a bad idea.

Of course the interest free bank loans are a deliberate loss leader to try and get to join their bank, hoping they will remain with them. And it tends to work as a strategy.

At school I banked with Wesptpac after winning a bank account (and some money) in an Australasian maths competion. But at university went with BNZ for the interest free overdraft and have stayed with them ever since.

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