dilema 6.25% vs 4.3%

castle96

can get 6.25% fixed/ gross with my Cov ac/ but only until 20/10/09. Have just cashed £5k of p/bonds. West Brom is 4.3% fixed/gross for 1 yr (might be withdrawn soon ?). Wondering what rates might be available 20/10/09. What would you do with the £5k now ? Thanks

Milarky

A bird in the hand. Keep it it where it is until maturity. In that time, for example it will have earned approximately 0.9% gross more than a 4.3% bond could. Thus any replacement bond could have a rate as low as 3.4% and you would have come out even....

But I suspect 4.3% or greater will be available (somewhere) come October anyway...

pbw

6.25% is a very good rate. i would stick with it till 20/10/2009 and then whatever is the best come october, i would then put it in the best then.

Richard_Cocks

Stick with the 6.25%, interest rates can't really go any lower before it matures..