NOW CLOSED Newcastle 3 year bond, 4% with 90 days notice to withdraw

avalanche_3

Thanks Blackdog:beer:

Good to see somebody is thinking along my lines

thepearce

The missus has applied tonight. I've seen this posted a few times but wanted to satisfy myself that even though 90 day notice applied there'd be no penalty.

Lloyds Vantage is good too, so long as you can meet the requirements for 4%....... but there's a 7k limit and a limit to the number you can have.

Michael_Corleone

This is a dilemma - I'm thinking of a large deposit.

ICICI offering 4.75% for 3 year fixed with no withdrawals, or should I go for a lower rate with the option to withdraw? I don't envisage needing the money for the next couple of years, but am worried about the base rate increasing and failing to act on it because the funds are tied up! Aargh!

gozomark

I think 4.75% will work out to be an attractive rate over the next 3 years

D1zzy

gozomark wrote: »

I think 4.75% will work out to be an attractive rate over the next 3 years

Serious question - on what are you basing your assumption.
Lots of us with the same dilema and without a working crystal ball, so some incisive thoughts would be good

Michael_Corleone

D1zzy wrote: »

Serious question - on what are you basing your assumption.
Lots of us with the same dilema and without a working crystal ball, so some incisive thoughts would be good

I agree. On a similar note, Nationwide are offering 4.7% for 3 years but with a *gulp* 270 day interest charge. Its better than nothing, but I guess if the rates rise they would need to do it significantly in those three years to get any value from an early withdrawal.

gozomark

I see two main scenarios for base rate

1. It goes up in stages at the economy recovers, and is 3-4% in 3 years time, averaging 1.5-2.5% over the three years.
2. There is a crisis on the UK's ability to raise funding to cover the budget deficit, and the £ collapses with base rate going to atleast 5%.

I think 1 is by far the most likely - if it happens like that, I think the best 1 year rates at the start of each year will be around
2010 3.5%
2011 4%
2012 4.5%
so averaging 4%

D1zzy

Michael_Corleone wrote: »

I agree. On a similar note, Nationwide are offering 4.7% for 3 years but with a *gulp* 270 day interest charge. Its better than nothing, but I guess if the rates rise they would need to do it significantly in those three years to get any value from an early withdrawal.

General concensus seems to be that base rate will remain low 'til early next year, and then rise slowly -but so much else can affect savings rates. I'm tempted by Nationwide (can't cope with the accents and the ultra ultra politeness of ICICI) - and my thinking is that I'll probably win the first 18months and may lose out in the next 18 months (haven't a clue really) but overall its not a bad rate and hopefully I will have other maturing funds to take advantage of higher rates if they appear

2010

Base rates may well stay low but it seems to have very little bearing on savings rates.
The banks as usual are out to pay as little as possible and to charge as much as possible for loans.

gozomark

Its called capitalism :-)

On the flip side, you as a saver try and get as much as possible, or as a lender pay as little as possible