Savings advice

The_Great_Mogul

I have a Birmingham Midshire fixed rate bond about to expire soon, but don't know where to put the money. I've been offered a new one with them at a rate of 3.35% gross or 2.67% net, but do i accept? I've already applied for a 2009/10 isa, the value of the bond is £43,000 excluding interest.

Thanks for any advice.

cocktail

The_Great_Mogul wrote: »

I have a Birmingham Midshire fixed rate bond about to expire soon, but don't know where to put the money. I've been offered a new one with them at a rate of 3.35% gross or 2.67% net, but do i accept? I've already applied for a 2009/10 isa, the value of the bond is £43,000 excluding interest.

Thanks for any advice.

interest rate looks decent. go for it.

G_M

Depends how long the fix is for, whether access to your money is imortant, and whether access to some/all is allowed.

As rates are likely to rise at some point, I'd go for an instant access/notice account. The rate might be a bit lower at present, but is likely to rise, or you can always switch later if someone introduces a better-paying rate.

Investec's High Five currently pays 3.17% and "always pays the average of the five highest savings rates in the market, so you never have to shop around again for the best rates".

It's not instant access (3 months notice required) and you need £25K+, but it is covered by the £50K guarantee scheme.

You can also get £50 intro bonus if you are referred. There some discussion here.

PM me if you want any more info.

posted_2

Have you got a mortgage?