Fixed rate Bonds question.

Stompa

musehead wrote: »

I believe there were many 2 or 3 year deals above 6%, wish i'd gone for them now!

Me too!!!!!!

savetilibleed

musehead wrote: »

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

We have gone for that (5.1% for 5 years with 90 day get out) very recently - but none exist now - and I will need to do something with a bond that matures at the year end where I've been getting 6.25 AER (4.86% net/month). Might just hive it away at best instant I can get for meantime - though if Birmingham Mids offer is still on at the current rate.... have to see what I'm offered by current provider.

ses6jwg

My Mum was annoyed with me at the time back in 2007 for tying my money up in an ISA 2-year bond at 6.3%.

Now shes not so annoyed aha

hebron

Thanks for your replies. I see there is not much interest in bonds over 3 years.
I was unsure whether to go for 4 or 5 years , but I think I'll stick to 3 and under.

Thank you.

Primrose

I personally wouldn't go for anything longer than two years at the moment. I'd like to see the General Election behind us and get some idea of what the economy is in for, and what effect this might possibly have on interest rates. If you're still uncertain what you want to do and have more than £25K, the Investec High5 account might keep you in a "holding" situation, with only three months interest while you wait and see what happens.

savetilibleed

hebron wrote: »

Thanks for your replies. I see there is not much interest in bonds over 3 years.
I was unsure whether to go for 4 or 5 years , but I think I'll stick to 3 and under.

Thank you.

Ideally we'd have gone for 3 or less but we needed to do best possible now as long as there are get outs, which there is with what we've done. Don't want to get out unless markets pick up to make a loss worthwhile or unless the money (or some of it) is needed.

boogienights

I'd be comfortable with a 3 year rate right now. You can get near 5% on those versus around 3% tops on an easy access account. Can't see interest rates rising that much over the next three years given our economy is up the creek!

D1zzy

boogienights wrote: »

I'd be comfortable with a 3 year rate right now. You can get near 5% on those versus around 3% tops on an easy access account. Can't see interest rates rising that much over the next three years given our economy is up the creek!

Depends whether you think we may be heading for rampant inflation (been there before!!) - and whether savings rates will rise with inflation. {crystal ball needed}

Ifts

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.

As above, I wouldn't fix for longer than a year with the rates currently on offer.
2 years and over only if there is early withdrawals option with a low penalty.

Debt_Free_Chick

I think of fixed rate bonds as a gamble ... you are betting on what interest rates will do over the life of the bond. Question is, where are you happy betting .... one year? two? more ....?