maturing £28k

frames1_uk

Just had a letter from Kent Reliance to say my 2 year 6% fixed rate bond matures on 21st November, I cannot believe it's been 2 years already.

What would anyone recommend I do with it now? Any fixes you would recommend and for how long?

Thanks

Cautious_Investor_3

Hi

6%, those were the days!

How long are you prepared to tie your money up for?

Do you want zero capital risk?

Most people seem to believe bank base rate will start to rise at some point, the question then is whether this will be passed on in terms of better savings rates. Personally I have my doubts, the banks and building societies are likely to push mortgage rates up more quickly than savings rates. However if interest rates in savings accounts were to rise you wouldn't want to be marooned on a five year fixed rate taken out now, there is therefore a balance to be struck between getting a decent rate now and having flexibility should interest rates rise in the future.

The Cautious Investor

opinions4u

I'd take a look at www.moneyfacts.co.uk.

Longer term fixes understandably have the higher rates.

Things to consider:

- maximising ISA alllowances
- paying of debt including mortgage
- BM have a 5 year term deposit paying 4.6%.
- The AA and Cheshire BS have a 3 year term deposit paying 4.1%
- Halifax have a 2 year term depsoit paying 3.55%
- Northern Rock have a 1 year term deposit paying 3.0%
- Nat West have an eSavings account paying 2.89%, including a 12 month bonus giving easy access

frames1_uk

Thanks for the replies. You're right... 6%, those were indeed the days.

I also got a letter today from Lloyds to say my Incentive Saver matures on 12th November and will move to the Easy Saver with Bonus, so I must go and check out what interest rate that is, rubbish no doubt. I didn't even realise that the Incentive Saver HAD an maturity date!

Ifts

opinions4u wrote: »

Things to consider:

- maximising ISA alllowances
- paying of debt including mortgage
- BM have a 5 year term deposit paying 4.6%.
- The AA and Cheshire BS have a 3 year term deposit paying 3.8%
- Halifax have a 2 year term depsoit paying 3.55%
- Northern Rock have a 1 year term deposit paying 3.0%
- Nat West have an eSavings account paying 2.89%, including a 12 month bonus giving easy access

The AA pays 4.10% on their 3 year fixed rate savings account

opinions4u

Ifts wrote: »

The AA pays 4.10% on their 3 year fixed rate savings account

So does the Cheshire! Ta

D1zzy

frames1_uk wrote: »

Thanks for the replies. You're right... 6%, those were indeed the days.

I also got a letter today from Lloyds to say my Incentive Saver matures on 12th November and will move to the Easy Saver with Bonus, so I must go and check out what interest rate that is, rubbish no doubt. I didn't even realise that the Incentive Saver HAD an maturity date!

Well don't overlook their Vantage accounts paying 4% on balances between 5 &7 K and even their E-saver wich pays 2.5% on balances over 10K

frames1_uk

I already have the Vantage as my current account, I might open the e-saver, yes.

Baldur

frames1_uk wrote: »

I already have the Vantage as my current account, I might open the e-saver, yes.

You can have up to 3 Vantage accounts, so up to 21,000 earning 4% AER.

frames1_uk

Baldur wrote: »

You can have up to 3 Vantage accounts, so up to 21,000 earning 4% AER.

I don't really get the 'moving £1k' in and out of accounts though.

D1zzy

frames1_uk wrote: »

I don't really get the 'moving £1k' in and out of accounts though.

3 accounts A B C
login once a month (or set up SOs)

Move £1000 A >B>C>A (takes about 30 secs)

The £1000 just has to go into each acc each month - it doesn't have to stay there