Icesave Fixed Rate Bond, Keep Or Cash In?

sheilanick

I have a 3 year bond, with two years remaining paying 6.8% and haven't decided whethre to cash it in or not. I don't need the money, but I feel nervous about waiting 2 more years and maybe no money left to pay back to me.

What is everyone else doing with their fixed rate bonds?

isofa

Already being discussed here: http://forums.moneysavingexpert.com/showthread.html?t=1265097

Primrose

We have a couple of bonds with Icesave. The longest doesn't mature until Feb 2010. The Government have guaranteed we will be compensated in full and that the interest prevailing on these accounts will be paid so we're leaving ours in to mature. With most good fixed rates being withdrawn over the past couple of days it will be pretty impossible to get such good rates anywhere else.

rosebud666

You also have to remember the loss of one or two months interest you lose taking the money now. I was going to put the money in a saga A/C at 6.85 (they promised to give me this rate even though it has now been dropped) but then I will lose about £380.

Paul_Herring

I've just this evening spent a while going through quite a few sites looking for fixed rate bond interest rates for an article I'd written on laddering fixed rate bonds. Highest 'clean' accounts I found:

1 Year: ICICI@6.70% (not sure if they're going to drop it) followed by AA@6.30%
2 Year: Kent Reliance@6% followed by Halifax@5%
3 Year: Halifax@5.3% followed by Nationwide@5%

I'm tempted to just keep mine running.

Baldur

Paul_Herring wrote: »

1 Year: ICICI@6.70% (not sure if they're going to drop it)

That's 6.6%, according to ICICI, Paul.

1echidna

Mine 7.01%AER matures July next year. From previous discussion people think payment on maturity may be delayed a little but perhaps the FSCS will be less busy with Icesave and there will not be undue delay. I am leaving mine in, unless some new info arrises.

Paul_Herring

Baldur wrote: »

That's 6.6%, according to ICICI, Paul.

My mistake, it's 6.75%

Baldur

Paul_Herring wrote: »

My mistake, it's 6.75%

Suspect that you need to clear your computer's cookies/cache - look at the date on the page to which you linked (wef 25th July 2008). A lot of water has passed under the bridge since then.

The current page says:

Now earn an even higher rate by opening a HiSAVE Fixed Rate Account. (HiSAVE Term Deposit is now called HiSAVE Fixed Rate account).
Key Features
High Fixed interest rate- up to 6.60% AER for 1 year Fixed Rate Account - Without Early Access Facility Save a lump sum for a term of 6, 12, 24 or 36 months
Interest rate fixed for the term of the account Minimum investment of only £1,000 , no limit on maximum investment
Facility to choose early access option - Earn even higher interest for choosing the account without early access facility.

chesky369

I have three fixed save bonds with ICEsave but I'll probably only be cashing in the one which finished in October, which I'd already given instructions about. The other two I shall leave there - why not if the interest rate is the same?

Paul_Herring

The page you refer to is for the fixed rate account. The one I linked is for the term deposits.

Two different accounts with different interest rates. Assuming the "Apply now" link on mine is actually valid - there's nothing on my link to suggest the account has been suspended.

I'll add the other one though, since I missed it first time round.