Fixed rate Bonds question.

hebron

I am going to open a couple of fixed rate bonds.

In your experience what would be longest you would take out a fixed rate bond for: Two,three,four or five years.

I am not sure how long to go for as interest rates can only go up.

Thank you for your time and answers.

Stavros_3

I am only speaking for myself, but I would not fixed longer than 1 yr.

D1zzy

For me 1-2 years if there are no withdrawals permitted
Longer if there is a getout option as long as the penaly does not take my overall rate below the best 2 year rate on offer.

twizzel

Stavros wrote: »

I am only speaking for myself, but I would not fixed longer than 1 yr.

That's my personal option too.
Might be right, might be wrong, none of us truly knows.

jb66

2 years seems to get a good rate.

yung

i would split the amount into 1yr and 2 yrs.

ses6jwg

Personally I would not fix for longer than 2 years.

Certainly not 5 years.

musehead

D1zzy wrote: »

For me 1-2 years if there are no withdrawals permitted
Longer if there is a getout option as long as the penaly does not take my overall rate below the best 2 year rate on offer.

Same here. I'm hoping another 5-year bond for 5%+ will come along with a 90-day getout clause.

juicyjude

Who knows what will happen. I have a three year fixed and am getting good rates on it. May win in the end may lose, but am a happy bunny atm.

Stompa

Unfortunately I have a bond that has just matured, so need to find a home for the cash. I can't make my mind up whether to stick it in a non-fixed account and hope a decent fixed rate one comes along in the not too distant future, or whether to just pick one of the current fixed rate offerings. I guess it's a dilemma lots of people are facing right now.

musehead

Putting money into a fixed rate account is essentially just a gamble on the interest rates. Nobody knows what will happen in the future. There were many voices last year advising people to only put money into 1-year 7%+ deals because better rates may be around the corner. I believe there were many 2 or 3 year deals above 6%, wish i'd gone for them now!