Northern Rock Fixed 4.85% - good deal?

flyingbanana_2

What do people think of this offer? Worth it?

Would love to fix my savings as B&B are killing me at the moment. They seem to drop their rate a lot quicker than let you know about new savings account, where they will pay higher rates!

grnglide

Bank of Scotland Instant Saver Reward pays 5.8 percent if you have over £5,000 but the offer ends on 26th November.

opinions4u

Looks like a 5 year fix that allows expensive withdrawals.

I think Halifax do a Stepped Income account that pays 5.5% AER for 5 years, but without the access.

blackswan2

Try the Kent Reliance BS or the Clydesdale Bank:

http://www.krbs.co.uk/1yearfixedbond.aspx - 6% for one or for two years

http://www.cbonline.co.uk/personal/savings/term-deposit/ - 5% for one year climbing to 5.5% for three years

Of course with Norther Rock you are as safe as possible, but the rate is not always the best.

Standard Life also do a 9 month bond at 5.25% is that's of interest:
http://www.standardlife.co.uk/content/savings/personal/bonds.html

earlgrey_3

It's a bet on the rate of inflation and interest rates for the next 5 years. To get out before then costs 180 days loss of interest. Net of basic rate tax the return is 3.88%.

If we go into a Japanese style period of zero inflation and ultra-low interest rates it could be a smart move. But if inflation over the next 5 years is more than 3.88% then you'd get back less in real terms than you put in.

It's a long-term gamble, albeit with an expensive getout clause: putting in just a portion of savings would hedge your bets. An alternative approach would be to use to use NS&I index-linked paying RPI +1%.