Around 10K for a year or two?

Kavanne

Do you think I would win the gamble of putting it away for 2 yrs at 4.2%?

This money used to be offsetting my mortgage but when my rate went down last year I put it away with Halifax at 6%.

I know it's all a gamble but would you take 3.65% for a year of 4.2% for 2 years?

My Halifax account doesn't mature until Nov anyway so the rates might all change by then, great! lol

DiggerUK

Wait till November. No more than 12 month fixed. Everything is turning on a sixpence.

Hungerdunger

If anyone really knew what was going to happen, we'd all be putting money into the same length fixed-rate accounts.

Given your two examples, if you chose the one-year option, you'd have to be confident of getting 5.3% when moving it at the end of the first year, in order to get the same as 4.2% for 2 years (Assuming my quick calculations are right). Also take into account the loss of a couple of weeks' interest while the money is in transit at the end of year one.

Whatever you do, it's a gamble; personally I'd take the two-year option, but I wouldn't advise anyone else what to do.

apt

As is pointed out in another thread the AA/Birmingham Midshires 5.15% for 5 years would pay more than 4.2% interest if you closed it after 2 years and paid the 90 days interest penalty.