One year or two year Bond?

Dograt_2

Hello to everyone, been lurking for a while now and found all the help on the Icesave situation very good. Money is now back in my grubby little mits:j

Now it is time to reinvest it, thinking of the chelsea BS bond I have about 40 K to put in question is one or two year bond? what is the forecast for one year. Will Interest rates be up or down on 3.75% ok I know no one has a magic ball but any ideas? all help welcome.

Liz_the_Whizz

hi dograt,

In a similar position with Icesave money just cleared - recession predictions seem to indicate that no economic green shoots till late 2010. But I find it hard to fix for 2 years at less than 4%.

Think I'll split mine in two, with half in a 1 yr FTB and half in a 2 yr FTB - that way, I'm bound to get it at least half right;) .

gozomark

Fixed rates are much higher relative to base rate than they "should" be, because of the credit crunch - don't expect fixed rates to go up just because base rate goes up in a years time or so.

Dograt_2

Liz the wizz

That was my thought also, you just confirmed it, after being shouted at for putting the money in Icesave now I can blame someone else !! LOL :rotfl:

I do think that makes sense thanks