50k - instant access for now or fixed rate bond?

fatbob10

Ok - would appreciate your thoughts. Have got 50k coming from a matured bond . Needless to say I cant match the rate it was attracting with todays interest rate offerings.

Im very tempted to stick it in a Citibank instant access account 3.1% and wait for the next building soc or bank that needs some quick cash and puts up a headline rate on a fixed deal.

Sure you can get 5% over 3 years fixed at the mo I think but I dont think that rate will look so attractive 12 months down the road. Less that 4% at the mo for a 12 month fixed rate bond just doesnt turn me on tbh.

What would you do?

opinions4u

I think we'll see shorter term fixed rates (e.g. 12 months or less) fall in the next few weeks, with 2 year+ terms rising a little.

I'd be tempted to go for the easy access option for now.

JAG

I think the best one year bond is the West Bromwich BS at 3.9%.

I have read that they think interest rates will stay at 0.5% well into next year.

I suppose if Banks and BS need to raise cash to fund increased borrowing then fixed rates should rise.

I would probably stick with the instant access 3.1% and see how the market goes over the next several months.