Looking for a Bond

mr_scientist

Hi,

I am lucky enough to have grandparents that are looking to invest £1000 for me.

They want me to have it in a bond for anywhere between 1 to 5 years.

Would anyone be able to recommend a Savings Bond that would meet those requirements that has a decent rate of interest?

opinions4u

Do a little research at a comparison site like:

http://www.moneysupermarket.com/savings/

Halifax are paying 5.5% on a 1 year fixed Web Saver or 6.0% for 9 months - 5.0% for 5 years! But I suspect that rate will drop fairly rapidly, so you'd need to open the account pretty fast.

If you are a taxpayer over 16 you could consider using your ISA allowance. Again Halifax will fix at 5.25% for a year or 4.75% for longer terms.

https://www.halifax.co.uk/savings

Careful with variable rate offers - many haven't yet incorporated the 1.5% reduction from the last BofE change.

Paul_Herring

opinions4u wrote: »

Halifax are paying 5.5% on a 1 year fixed Web Saver or 6.0% for 9 months - 5.0% for 5 years! But I suspect that rate will drop fairly rapidly, so you'd need to open the account pretty fast.

Too late. Both the ones you mention have been withdrawn. They have only 6 month and 2 year offers left: http://www.halifax.co.uk/savings/fixedwebsaver.asp

mr_scientist wrote:

They want me to have it in a bond for anywhere between 1 to 5 years.

I've got a list of 3 month to 5 year fixed rate bonds on the 2nd half of http://docs.google.com/Doc?id=dwnwdnb_66drzgz6f4&hl=en_GB though as opinions4u points out, an ISA could possibly get you more interest.

mr_scientist

Thanks for both the replies, they have been very useful.

Unfortunately I'll be unable to invest this money into an ISA account as I've already used this years allocation (I did presume as you'd pointed out though that this would be the better type of account to go for).

mr_scientist

I was wondering if anyone else would be able to give me further advice now I've posted aditional details?

Lokolo

mr_scientist wrote: »

I was wondering if anyone else would be able to give me further advice now I've posted aditional details?

Look at opinions4u's post. Halifax savers...

apt

I think the Chelsea BS Autumn Bond - 5.65%AER till January 2010 is slightly better than the Halifax providing you are sure you won't need the money before then.

mr_scientist

Thanks for that APT :T

That's pretty much the kind of thing I'm looking for, and it has a decent rate on it as well.

Mithos

mr_scientist wrote: »

Thanks for that APT :T

That's pretty much the kind of thing I'm looking for, and it has a decent rate on it as well.

More VERY quickly if you want it. In my experience when a BS/Bank launches an account paying quite a bit above everyone else, its to advertise the place. Best buy tables etc. They brought out a 6.9% bond at the start of the year (highest paying around then) which was only around for 2 days, fortunately I got the heads up about it during a general call and was able to find out about it and secure the bond.