What is the best term for a fixed bond

migh

What would be the best term for a fixed bond and maximum that should be invested.

isofa

It depends on the individual...

With rates up in the air at the moment, people think fixing for no longer than 12 months is prudent. However when they were 7% 12 to 18 months ago, I suspect people said the same, but fixing then for a longer term then would have been prudent considering the dive in rates.

Remember also, effectively once money is in a fixed rate account, it can't be touched for the term, without (usually) heavy penalty.

Obviously you'll not want to risk more than 50K with one organisation due to the FSCS protection...

Myrmidon_J

As 'isofa' has said: it depends on the individual.

I would consider anything over two years a real stretch, but then I'm young, beautiful - and don't have any money. (Two out of three ain't bad! )

The maximum that should be invested is usually £50K (the limit of FSCS protection for single account holders), although joint account holders are covered up to £100,000.

However, some accounts - e.g. the Post Office growth bonds - are not covered by the FSCS; instead, they are covered by the Irish government guarantee, then (when that expires) the European deposit protection scheme, which, I believe, guarantees 100% of the first £100,000 (no Euro key, help!).

gozomark

There is no "European deposit protection scheme" - there are separate deposit protection schemes run by each country in Europe. The Irish guarantee will drop from unlimited to 100% of € 100,000 next October-ish