Nationwide E-Bond

wkt54

I have a £95,000 one year e-bond which is due to expire on 14 October. It was at 6.3%.

Would you advise me to take out a 2 year bond at 4.15%, or another 1 year at 3.25%, hoping that by next October interest rates will have gone up.

I don't need the cash for a couple of years.

Thanks

gozomark

4.15% for 2 years and 3.25% for 1 year implies 5.05% for yr 2 - I'd go for the 2 yr - even if base rate goes up to 3%, 5.05% will still look attactive

alternatively, put 50% in 1 year and 50% in 2 year

hunsbury0

I would not invest more than £50,000 in an institute. i would split it to qualify for the FSA guarantee.

Hungerdunger

Neither of these rates are market leaders - have a look at the West Brom for better rates, or look at a comparison site such as this one

wkt54

Thanks

Just seen the West Brom is 4.45% for 2 years.

But I live in France, and do not think I would be able to open an account with a French address.

I've been with the Nationwide for 30 years, and when I moved here 2 years ago, just had to change my address.