Halifax stepped income reserve?

D1zzy

Any thoughts on this one -MIL is looking for somewhere to put her money when her web saver reward ends this month
http://www.halifax.co.uk/savings/steppedincome.asp

year 1 = 4.25%
year 2= 4.75%
year 3 = 5.25%
year 4 = 5.75%
year 5 = 6.25%

Am in general at the mo against > 2year fixes, but these look good rates - and there is a get out all be it a potentially expensive one.

After thought -Maybe not 5yr average 5.25% - might as well go a standard 5 year fix @ 5.25ish

nottud

If you are happy to fix for 5 years, then perhaps also look at the Northern Rock 5 year option.
The rates are not quite as high, but the penalty is 180 days loss of interest. The "get out" on the Halifax only falls to less than this when you are part way through year 3.
I posted earlier today about the N.Rock 3 year that only has 120 days loss of interest.
Who knows what the position will be in 3 years time?

D1zzy

nottud wrote: »

If you are happy to fix for 5 years, then perhaps also look at the Northern Rock 5 year option.
The rates are not quite as high, but the penalty is 180 days loss of interest. The "get out" on the Halifax only falls to less than this when you are part way through year 3.
I posted earlier today about the N.Rock 3 year that only has 120 days loss of interest.
Who knows what the position will be in 3 years time?

So far have only done 5 yr fixes with a 90 day get out and then only when there is a comparable rate after the penalty , with the prevailing 2 year rate.
I think the sight of a "6.25%" rate on the Halifax bond adled what's left of my brain for a few secs

Baldur

D1zzy wrote: »

I think the sight of a "6.25%" rate on the Halifax bond adled what's left of my brain for a few secs

Their marketing department achieved its aims then - dazzle the customer with large numbers and hope that they don't see the small print.

D1zzy

Baldur wrote: »

Their marketing department achieved its aims then - dazzle the customer with large numbers and hope that they don't see the small print.

True but it was short lived and I always ask you wise guys before committing