ICICI offering 4.3% fixed

MiserlyMartin

I had a call from ICICI trying to get me to agree to a new fixed rate as my existing 6.85% bond is about to mature. They were especially keen to get me to go for it and they were offering a specially higher than on the website (3.9%) rate of 4.3%.

I didn't take it because I can transfer the money to Halifax's 6.25% fixed account which runs out at the end of July. They will call back when I've thought about it.

6.25% for 5 months or
4.3% for 12 months what would you do?

kingmonkey

£1000 * 6.25% * 5/12 = £26.04
£1000 * 4.30% * 12/12 = £43.00

Depends what you think interest rates will be in 5 months I guess.

KingL

If you went Halifax, you would have to get 2.9% for the 'other' 7 months to break-even, which might still be possible by then.

Can you fix longer with ICICI? Could you could get 2 years at 4.3%? If so, you would have to find 3.8% post Halifax to break even over 2 years. That sounds like a bit of a tall order!

I'd try pushing for a special rate for 2 years with ICICI, personally.

MiserlyMartin

Cheers for the reply. I missed the deadline for 4.3%, althought the woman was so keen to get me to fix it again. I declined but she did not seem to understand this and kept reading her script. It reminded me of a scene from PhoneJacker. It annoys me that to get any kind of half decent rate, we have to help prop up a bank by investing for a fixed term. And I'm tempted to take the money and put in under the mattress or invest offshore instead, so the bank of gordon can't have it.

I can't see rates getting much lower now, no point in fixing in this low.