Fix Your Savings Rate NOW! Article Discussion

JYK

I think that's as high a rate as you'll get for some time to come so long as you can afford to leave the sum untouched.

poppy10_2

Chelsea's Summer Bond has been replaced by the Autumn Bond - still paying 3.65% fixed for a year, min £1000, no withdrawals

http://www.thechelsea.co.uk/savings/invest_fixedrate_na_intro.html

ScarletBea

Why isn't the YBS 3 year bond, paying 4.65%, in the top option for 3 years?

stowupland4

I am considering the YBS 5 year fixed at 5.30. Would I be wise to fix for 5 years? Any other suggestions please?

ses6jwg

Personally, I think 5 years is too much. But its up to you.

2 Years Max for me.

However some 5 year bonds you can still withdraw money as long as you provide notice, might be worth going for?

Primrose

I would normally fix for a max of two years, but having just read that the B of E interest rate is likely to be more or less frozen for several years, it doesn't seem that fixing for 5 years will lose you too much on the interest rate stakes if you can afford to tie the money up for that long. However, it's probably still best to split the money up into 2, 3, 4 and 5 year batches so that you have a ready stream of maturing bonds in case your financial needs change over that period - and check which ones allow you to withdraw, with a penalty or notice period.

D1zzy

I was looking to do no more than 2 years but after reading some of the threads on early withdrawal with loss of interest from say 5 year bonds, I put together a spread sheet that enables me to do easy comparisons of net interest for varying fixed periods and rates taking into account loss of interest for early withdrawal. On that basis my Saga offer of 2 years at 4.3% was equivalent to their offer of 5 years at 5.1% with early withdrawal (90 days loss of interest) after 2 years.
I opted for the 5 year bond as I lose nothing withdrawing after 2 years and have the option to continue for longer.
I personally would not opt for longer than 2 years without an option to withdraw.

Primrose

D1zzy - thanks for that helpful insight as my maths are obviously not up to your standard. Unfortunately am maxed out on the Saga/Birmingham Midshires umbrella group so will have to look elsewhere for depositing any spare cash.