Kaupthing FR Account & Deals

Jonbvn

I have just opened a KE a/c and transferred some money in. Obviously the fixed rate accounts/deals on offer are attractive. However, I was wondering how people set up their FR accounts.

The min for a FR deal is 1k. Therefore if I had say 10k it would seem to me that it would be better to open 10 x 1k deals rather than 1 x 10k deal. This is because if I needed money before the end of the deal (say 5k), then it would not be necessary for me to break all my deals, only some of them. This would mean I would get slightly more interest than if I had only 1 x 10k deal.

Given the 10 x 1k deal approach means for 1 year deals (@7.15%) I could break 6 out of 10 deals and still make the same interest as the instant access account. If I break less I get more interest than the IA a/c, and vice versa.

Has anyone else had any thoughts on this?

TIA!:beer:

funkyhitman

Good idea. I hadn't thought of this. Another benefit is if you open multiple FR deals over a large period rather than opening all 10 at once, you have the potential to get a better rate on some deals if the interest should go up over the next few months. I've been waiting for a rate increase before I lock away any money so your idea coupled with mine is on to a winner...unless rates go down of course. But I keep hearing rates may well go up soon but, really, who knows. Roll on 10th August for this months base rate announcement.