Is fixing a good move in the current climate?

tawse57

Hi all,

I have a lump sum which is my inheritance and I am unsure whether to fix it for 6 months, when I hope to buy a house, or to leave it in an easy access account?

Part of me feels that being able to get my money out in a hurry in the current climate might be a wise move but is this just paranoia and that the banks are safe?

Thanks for any thoughts,


T.

occamsrazor

tawse57 wrote: »

Part of me feels that being able to get my money out in a hurry in the current climate might be a wise move but is this just paranoia and that the banks are safe?

If the rate difference between easy-access vs fixed were hugely different it might be worth it, but generally-speaking there's not that much of a difference (less than 1%) and so I don't think it's unreasonable to want to keep your savings highly liquid in these current times of uncertainty....

XXXX

nilrem wrote: »

I have always tended to keep my savings in Fixed rate accounts with monthly interest but I also keep a reasonable amount in instant access in case I should need it quickly.

Me too! In the current climax, interest rates are likely go down soon. Leave enough for instant access, and put the unused rest into fixed rate accounts and remember to spread around make sure no more than £50K in each authorised institution. :beer:

tawse57

NR has begun offering a bond for a year paying just 4.5% which kinda hints where interest rates are going later this week.

tawse57

Yes, I think I will fix for 6 months now as I hope by next Spring house prices will have fallen a fair bit from where they are now.