5.19% is more than 4.8%

Interest isn't calculated in the same way on mortgages as it is on savings accounts but it is unusual to get more on savings than you pay on a mortgage - if you could, then banks and building societies would be losing money with each new customer.

It's worth putting a couple of thousand somewhere handy in case it's needed.

I have around £20,000 to invest. What should I do:

(i) Stick the money in my mortgage (I have a fixed rate until 1st July 2011 at 5.19%)?

or

(ii) Put the money in a high interest savings account (gross 6%, net 4.8)?