Do I reinvest a maturing FR a/c now with spare funds

savetilibleed

I have a 2 yr FR Bond maturing in late Dec. With all rates on the slide, do I invest the equiv amount now in something using funds in a variable a/c that will lose its 0.5% bonus in Dec now in the best of whatever is available (not much) now, or wait a bit until nearer maturity. Will there be better deals available in maybe 3 weeks?

Loughton_Monkey

savetilibleed wrote: »

I have a 2 yr FR Bond maturing in late Dec. With all rates on the slide, do I invest the equiv amount now in something using funds in a variable a/c that will lose its 0.5% bonus in Dec now in the best of whatever is available (not much) now, or wait a bit until nearer maturity. Will there be better deals available in maybe 3 weeks?

Sorry, can't understand your question. Do we understand that you want to use another 2 year fixed rate, but are asking whehter to open it now or later?

savetilibleed

Loughton_Monkey wrote: »

Sorry, can't understand your question. Do we understand that you want to use another 2 year fixed rate, but are asking whehter to open it now or later?

Essentially, yes - sorry it was a bit gobbledygook wasn't it or possibly a one year. I know there is Coventry's Poppy Bonds to go to who I have another (Poppy) bond with and I tend to favour. It's a case of now while they are on offer or wait and see.

Lower_North

All the talk is that Bank of England will up interest rates sooner rather than later, so may be worth waiting.

Ifts

Along with the Coventry's Poppy Bond, you have also got the 1 year Skipton bond paying 3.15% Gross pa/AER.

Other deals will come along soon, the best buy tables are always changing. Also at a guess I would say 1 year fixed rates will nudge upwards slightly, at the moment there is not a lot of difference between 1 year fixed rate bonds and instant access accounts.

Loughton_Monkey

savetilibleed wrote: »

Essentially, yes - sorry it was a bit gobbledygook wasn't it or possibly a one year. I know there is Coventry's Poppy Bonds to go to who I have another (Poppy) bond with and I tend to favour. It's a case of now while they are on offer or wait and see.

My own very personal opinion, based upon seeing so many small 'hikes' in savings account interest over the last few weeks, is that waiting until a little bit nearer won't do any harm.

pqrdef

In September Bank of Baroda said they'd be launching a range of fixed-rate ISAs "in the next few months" or "later in the year" depending what you read. The speculation was that they'd be aiming to make a splash as they did with their non-ISA bonds by offering headline-grabbing top-of-the-table rates for the first couple of months. No more gossip since then though.

D1zzy

In these uncertain times, if you are a tax payer it seems to me that the net extra interest available on current 1 and 2 year fixes, over that available on instant access accounts is not worth the "tie in" - unless you have a very large amount to save, or you can extract your money with very little penalty. Rates also appear to be beginning to rise (Recent -Natwest 2.89%, PO 2.9% Nationwide 2.99% Skipton 3.3% - to name but a few).