National Saving

bowlesbargain wrote: »

I have two index linked bonds maturing in April and May. One is a Three year bond the other a Five year bond that was reinvested 5 years ago.
What is the general view in relation to index linked bonds should I reinvest for another 3 or 5 years, or should I cash in the bonds and try to find a ISA/Fixed bond paying two and a half percent for the next 5 years.

Good luck trying to find an ISA/Fixed rate bond paying 2.5% for 5 years.


I have quite a few index linked bonds in NS&I. Contrary to all my posts about using the interest paying current accounts and regular savings accounts I let my NS&I accounts rollover (but I do change my 5 year ones to 3 years) I imagine that their interest rate premium will rise eventually and I do have the comfort of knowing that this chunk of money is index linked at RPI so is certainly not losing value.

Good luck trying to find an ISA/Fixed rate bond paying 2.5%

http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

See 5 year rates above.

I don't know if I'd be happy to re-invest for three years at such a miserly rate. Why not consider re-investing in a one year bond and see if rates go up during 2018 (which they are expected to) and then re-invest for a longer term on a better rate in a year's time? I just checked and you can get 1.9% for one year which isn't that far off the 2.2% for three years that you mentioned. Of course, there's no guarantee where rates might be in a year's time so it's just about weighing up all options.