Fixed rate Bonds question.

SailorSam

NS&I have a 5yr fixed with a 90 day get-out.
wouldn't that be a good deal ?

Ifts

SailorSam wrote: »

NS&I have a 5yr fixed with a 90 day get-out.
wouldn't that be a good deal ?

I think there are better fixed rate deals than the NS&I 5yr fixed rate bond.
Birmingham Midshires 3 Year Fixed Rate Bond is OK deal (better rate & shorter term) with the 90 day get out clause.

musehead

SailorSam wrote: »

NS&I have a 5yr fixed with a 90 day get-out.
wouldn't that be a good deal ?

For me it's a pretty good deal considering they offer 100% security and I want to put more than £50k in.

It seems almost certain i'll end the bond early though.

D1zzy

Ifts wrote: »

I think there are better fixed rate deals than the NS&I 5yr fixed rate bond.
Birmingham Midshires 3 Year Fixed Rate Bond is OK deal (better rate & shorter term) with the 90 day get out clause.

This is also better than most 'cos I believe the Ts and Cs specifically say "90 days loss of interest" as opposed to "penalty = to 90 days loss of interest" {eg NSI} -so less Tax should be payable if you do withdraw.
Eg (simple numbers)

B&M (loss of interest)
Gross interest earned = £1000
loss of interest = £100
taxable = £900
Nett £720
Return £720

NSI (penalty = X days loss of interest)
Gross interest earned = £1000
taxable = £1000
Nett £800
Penalty £100
Return 700

Jonbvn

We have tied our cash ISA money into a 3-year fixed rate. However, the rest of our cash is in Investec High 5 and 3 year fixes (2 years left) with ING (from KE) at over 7%!!

I personally wouldn't go for more than a 2 year fix ATM, since the outlook is so uncertain.