I'm looking for some opinions here on a potential small savings/investment opportunity...
I got an interesting email from the president of my employer today. Basically, any employee who wants one can get a 0% interest loan of $5k, until Sept 31st. At that point it can either be paid in full or converted to a regular loan at a yet-unknown interest rate (email said details to follow). The purpose of this loan is to help with possible "stressful" situations due to the current global issues.
My financial situation - I don't really need the money. My fiance and I have >$100k in index funds in addition to a $10k emergency fund (which is currently earning a promo 3% interest until May 31st). My employment with this company is plenty stable (been with them for 3 years, and I'm one of a few software guys who knows their stuff really well). My fiance and I are planning a small wedding in September, so will have some slightly increased expenses between now and then, but nothing we can't handle. Currently we invest more than her entire (much smaller) income (so around 45-50% of our total income), and this savings rate will go up to probably 60-70% after we get married.
That all being said - should I take this 0% interest loan? And do what with it? Invest in stocks to take advantage of the current on sale market? Put it in a high-interest savings account? Pay it off immediately in September, or keep it and pay it off over time via payroll deduction? I realize that depends on the interest rate they give, but what rates would you keep it and what rates would you pay it off immediately?
My current thinking is twofold, depending on the interest rate it would convert to on October 1st... 1) take the loan and invest it immediately. The market could go down for several more months (or even years), which would be fine - I could convert to a loan and pay it off fairly quickly come September if need be. Or 2) take the loan and put it in the highest-interest savings account I can find, and just pay it off immediately at the end of September. Easy ~$50.
What would you do in my situation? All opinions and suggestions are welcome.