Barclays 5year Fixed Bond

Magenta

hi all,

has anyone opened a Barclays 5 year Fixed Bond 5.25% guaranteed?

Do people think this is a good savings plan?

Wolf_Man

Simply... yes

I keep wondering why there is so little mention on the forum about this product.

I thought that it was good enough and have opened one for myself.

apt

The rate is good at the moment, but you are completely tied in for 5 years and things could look different in a couple of years. Also the Skipton BS offers a similar 5 year bond with 0.1% more interest.

poppy10_2

Magenta wrote: »

hi all,

has anyone opened a Barclays 5 year Fixed Bond 5.25% guaranteed?

Do people think this is a good savings plan?

Absolutely not. 5.25% is paltry when you look at the long-term history of interest rates, and with the current inflationary printing, we may well see BoE rates into double figures by next year

Magenta

apt wrote: »

The rate is good at the moment, but you are completely tied in for 5 years and things could look different in a couple of years. Also the Skipton BS offers a similar 5 year bond with 0.1% more interest.

Sounds good, haven't seen any mention of that one or would have gone for it!

Magenta

Personally i thought the Barclays one sounded good, better rates than most I have seen.

Baldur

Magenta wrote: »

Sounds good, haven't seen any mention of that one or would have gone for it!

Skipton actually quote the AER as 5.38% for the monthly interest option or 5.35% for the annual interest option - http://www.skipton.co.uk/savings_and_investments/bonds/fixedRateBonds.aspx?utm_source=homepage&utm_medium=banner&utm_campaign=5yrFrbLeftSmile

Gymgenius

poppy10 wrote: »

Absolutely not. 5.25% is paltry when you look at the long-term history of interest rates, and with the current inflationary printing, we may well see BoE rates into double figures by next year

Opinions4u will be along any minute to contradict that statement.

incus432

Northern Rock 5yr stepped bond appears to have better rate too- rises from 4.25% yr1 to 6% in yr 5,. Confusingly the rate is quoted at 5.85 % ('step5) on money.co.uk but i don't think this is correct - rate looks more like just over 5% pa compounded over 5yr. (Someone who knows about AERs can do doubt work it out - N Rock dont give that figure) 180 days loss of interest for withdrawal.
see www. northern rock.co.uk/savings/fixed-rate-bonds/stepped-fixed-rate-bond_issue_6 slash rates (sorry i am not allowed to post link apparently!)

Magenta

Baldur wrote: »

Skipton actually quote the AER as 5.38% for the monthly interest option or 5.35% for the annual interest option - http://www.skipton.co.uk/savings_and_investments/bonds/fixedRateBonds.aspx?utm_source=homepage&utm_medium=banner&utm_campaign=5yrFrbLeftSmile

Isn't it usually a slighlty better interest rate for annual interest rates? Or am i wrong?

Baldur

Magenta wrote: »

Isn't it usually a slighlty better interest rate for annual interest rates? Or am i wrong?

Yes but the account does not run for 5 full years - it runs for longer, so if you started it now, you'd have 61 monthly interest credits to the account, rather than the normal 60, which skews the AER.