optimum period to tie up savings

semaj_3

Can anyone advise the optimum period of time one should tie up savings in a fixed bond.
1 year = 3.75%
2 years = 3.85% and so on upto a period of 5 years at 4%

Lokolo

Thats upto you. A lot of people have tied theirs up for longest periods as they can as they think rates will stay low for a while.

Others need access to money after a year so only fixed for a year.

Some think that rates will recover by a years time so theres no point fixing for 2.

Milarky

12 months fixed term tops, unless the rate is good (which no current rates are)

oldfella

I dont believe rates will stay low in the medium term - with rates this low I wouldnt fix at all

tinkerbel

I fixed mine at 7.1 for 2 years in september and i think that thats ok...

GeorgeHowell

There is no way of knowing what will happen to interest rates over the medium and longer term. Best option is to hedge by dividing available funds equally among best available rates over 1, 2, and 3 year terms.

amcluesent

We're not far off a low IMHO for interest rates, wouldn't fix for more than 12 months tops.

semaj_3

Many thanks to all - will stick to the 1 year!

thanks again

meatandtwoveg

Remember "92" when rates went from 11% to 15% overnight i think?

With the clown Brown in charge the IMF could call his bluff rates go from 2% to 6% in the shake of a mucky stick?