Fixed rate bond interest rate reduced

edvb

I have several fixed rate bonds and read in the newspaper today that some banks/building societies have reduced the rates on them, ie Anglo Irish bank and Julian Hodge bank, can they do this? I thought when I took out fixed rate that it was fixed for the term? whats the point of investing in a "fixed rate" when it is not fixed??????

Baldur

The rates offered to new depositors in fixed rate accounts can change frequently but not for those who have already deposited funds in them. Have you checked your rates, or have you just read the newspaper and assumed that this applied to you?

Gwhiz

Of course they cannot. Are you sure the article was not saying that rates are reduced for new bonds being opened, as opposed to existing bonds?

Hungerdunger

Was it this article in today's Express? If so, it doesn't say anything about reducing existing fixed rates.

If it wasn't, it would be helpful if you gave us your source.

If you worry about these things, I suggest you give up reading the express, as it loves inducing paranoia. I see it is now forecasting:

BRITAIN is set to be battered by an Arctic blast later this week with freezing gale-force winds and blizzards sweeping the country.

I bet you 50p it won't be nearly as bad as this.