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Fixed Rate Bond - is this too long?

Hi all,
I'm considering a fixed rate Bond for 2 or 3 years (I already have some 1 year Bonds). I've been offered some very good rates (over 8%) but do wonder if the timescales are too long for tying up money, from the viewpoint of possibly losing out in the future?
I'd be grateful for any thoughts please! Thanks.

Brian.
«1

Comments

  • tradetime
    tradetime Posts: 3,200 Forumite
    polybear wrote: »
    Hi all,
    I'm considering a fixed rate Bond for 2 or 3 years (I already have some 1 year Bonds). I've been offered some very good rates (over 8%) but do wonder if the timescales are too long for tying up money, from the viewpoint of possibly losing out in the future?
    I'd be grateful for any thoughts please! Thanks.

    Brian.
    Personally, I'd say a fixed rate deposit offering 8% would be well worth a 2yr tie-in and probably a 3yr, assuming you are sure you can tie up the money for that time period, I am however not aware of any such offer currently.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • Stavros_3
    Stavros_3 Posts: 1,288 Forumite
    Interest rates are likely to start coming down towards the end of the year and into next by as much as 1%, If you can get 8% on a fixed rate bond I would be snapping their hands off, who is it with btw
    Liquidity is when you look at your investment portfolio and **** your pants
  • Nick_C
    Nick_C Posts: 7,675 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Home Insurance Hacker!
    Best I can see at https://www.fsa.gov.uk/tables is 7.2% for 1 year or 7.06% for 2 or 3 years.
  • stevetodd
    stevetodd Posts: 1,016 Forumite
    polybear wrote: »
    Hi all,
    I'm considering a fixed rate Bond for 2 or 3 years (I already have some 1 year Bonds). I've been offered some very good rates (over 8%) but do wonder if the timescales are too long for tying up money, from the viewpoint of possibly losing out in the future?
    I'd be grateful for any thoughts please! Thanks.

    Brian.

    Who is offering 8%? Please tell me I will certainly get involved at 8%
  • lsudaw
    lsudaw Posts: 19 Forumite
    Where Where??
  • tradetime
    tradetime Posts: 3,200 Forumite
    My initial suspicion is that it is something tied to another product, such as an investment product.
    Hope for the best.....Plan for the worst!

    "Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown
  • greenface
    greenface Posts: 4,871 Forumite
    Mortgage-free Glee!
    (over 8%) said brian.:cool: please tell:T
    :cool: hard as nails on the internet . wimp in the real world :cool:
  • Pictures or it didn't happen.
  • Primrose
    Primrose Posts: 10,721 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've been Money Tipped!
    If you can get 8% interest over two or three years and can definitely afford your tie your money up for that length of time, I'd go ahead. I've read in the press today that interest rates are forecast to come down towards the end of the year to try and cut inflation so grab it while you can, (but check the small print carefully first).
  • greenface
    greenface Posts: 4,871 Forumite
    Mortgage-free Glee!
    post the small print
    :cool: hard as nails on the internet . wimp in the real world :cool:
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