3 Year Bonds

pjbltd

Hi guys,

I have 10,000 pounds I want to lock away for 3 years.
Please could I get some advice on putting it in a 3 year fixed interest rate bond or similar investment?

Many thanks!

pjbltd

Penniesmakepounds

KRBS has a 1 year bond out from 1st June 3%... nett 2.40% for taxpayers

Not so new a 2 year bond 3.75%.... 3% nett for taxpayers


FSA tables will give you more accurate across the board result for 3 year options.

The highest is 4.25% to lock in for 3 years less tax if a taxpayer.

Not a fantastic amount but things could change in future.

slinga

Why not look at AA internet account.
Much better rate.

Why do you want to go for bonds?

DiggerUK

pjbltd,
Best 3 year is NSI Index Linked. No savings A/C's even match inflation at moment.

Only other place for that ammount and time period is physical gold. ( My favourite)
Could also consider gold ETF's and gold miners in an S&S ISA.

Best of fortune.

codetown

If you are quick in applying you can still get into the Coventry BS 3Y Fixed rate bond at 4.20%:
http://www.coventrybuildingsociety.co.uk/savings/fixedbonds.aspx

As others said, things might change in time, so you might alternatively look at instant savings with a bonus until economy improes and rates start rising.

pjbltd

DiggerUK wrote: »

pjbltd,
Best 3 year is NSI Index Linked.

Thanks DiggerUK but I've actually used the full 15K allowance on the latest 3year issue of Index Linked NS&I certs.

Does anyone know if it is possible to buy a corportate bond for 3 years and get a higher interest? e.g. hyothetically a Lloyds Bank bond for 8% for 3 years. And how someone would go about that?

home_alone

I am considering the Lloydstsb 3 year bond at 4.1% mainly because I already have money with them so its an easy move.

gazgeezer

If you have cash ISA still as an option why not go for a 3 year ISA with either KRBS 3.5% or Northern Rock 3.25% to 4.25% in the final year. Tax free of course... but I would expect you have used this option already !!

pjbltd

gazgeezer wrote: »

If you have cash ISA still as an option why not go for a 3 year ISA with either KRBS 3.5% or Northern Rock 3.25% to 4.25% in the final year. Tax free of course... but I would expect you have used this option already !!

Thanks Gazgeezer, I like the Northern Rock option and think I will go for that. I actually have not yet used my allowance and it also looks like you can transfer other ISAs into this which is great!