Barclays 5year Fixed Bond

Magenta

Ah, OK. Thanks for the info.:beer:

Primrose

I wouldn't tie up savings for five years. As a taxpayer I know that over the next few years taxes are inevitably going to increase so I'm gradually trying to move my cash savings into tax-free ISAs to reduce the amount of tax I pay. This means I have to split up my savings into different one or two year bonds, so that I always have access to enough money in any given year to use up my annual ISA allowance. If you're not a taxpayer this issue probably won't bother you but I reckon I've already given enough of my hard earned cash to the government in the form of bank bail outs so I'm trying to plan my finances ahead to ensure I don't give them any more than I have to. Also, just in case something unexpected happens to the economy and interest rates start to rise, I don't want to be locked in too long at lower rates.

zygurat789

Gymgenius said

Quote:
Originally Posted by poppy10
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


Because we have inflation the powers that be have tried to rectify the situation by giving us a LITTLE inflation by quantitative easing ie printing more money. If they get it right - fine. The chances of them overdoing it must be fairly high and the result will, inevitably, be more inflation than they intended. Recently the monetary policy committee have only used interest rates as a counter to inflation, hence interest rates are very likely to rise and I remember paying mortgage interest at 15% which would mean that repayments on recent mortgages would almost triple - wouldn't that be fun?
Interest rates can only go one way, the question is how far?

D1zzy

zygurat789 wrote: »

Gymgenius said

Quote:
I remember paying mortgage interest at 15% which would mean that repayments on recent mortgages would almost triple - wouldn't that be fun?
Interest rates can only go one way, the question is how far?

I too remember this late 70s I think. Any one know what savings rates were at the time?
-didn't have any after paying the mortgage and stacking the spare bedroom with washing powder coffee etc -in an attempt to beat rising prices