Would you go "long" term? 4yrs for e.g.

bigfreddiel

K_P83 wrote: »

Thanks guys.

I've not left it until the last minute. I dumped in my 5.1k in April 2010. It's only now am i looking to put it into a FRISA as opposed to an IAISA. It's my understanding that i can select any amount of my ISA pool (so long as the FRISA allows transfers in) for the FR.

We're in a bit of no mans land at the moment (me & the gf) as we're trying to save, and will be moving out of my folks place, but don't know when.


Did Nationwide recently do a 4 year ISA for a little over 4%? I was speaking with a chap at the weekend who advised me to go for this, although they weren't advertising it (but he discovered it & went for it). When i look into it i can't find it.
He may be a bit slow on updates though, as he has no internet connection - he's a 87 year old fella & computers are evil

Nationwide did 4.4% In March/April 2010, but pulled on 5th April - I managed to transfer in fromNatwest, on 6h April they offered 4.25% for a 4yr fix.

Like someone else said take the best on offer now rather than what may neever be!

fj

Milarky

K_P83 wrote: »

Looking at Halifax's 4.25% for 4yrs.

My immediate thought is what if in 2 years time, rates are much higher?

You the experts, would you go long term?

Also, probably not suited to this forum specifically, but how do i go about buying shares & would you advise for or against it?

I'm having the same thoughts about that very account. Here one way to look at it

SINCE there is [instant] access to this account with 180 days loss of interest [-2.1%] ..

if 3 year fixed rate > 4.25% + 2.1%/3 > 4.95% in 12 months time ..

if 30 month fixed rate > 4.25% + 2.1%/2.5 > 5.10% in 18 months time ..

if 2 year fixed rate > 4.25% + 2.1%/2 > 5.30% in 24 months time ...

if 18 month fixed rate > 4.25% + 2.1%/1.5 > 5.65% in 30 months time ..

if 1 year fixed rate > 4.25% + 2.1%/1 > 6.35% in 36 months time ...

Then it could be the wrong decision for you....

Nine_Lives

Milarky wrote: »

I'm having the same thoughts about that very account. Here one way to look at it

SINCE there is [instant] access to this account with 180 days loss of interest [-2.1%] ..

if 3 year fixed rate > 4.25% + 2.1%/3 > 4.95% in 12 months time ..

if 30 month fixed rate > 4.25% + 2.1%/2.5 > 5.10% in 18 months time ..

if 2 year fixed rate > 4.25% + 2.1%/2 > 5.30% in 24 months time ...

if 18 month fixed rate > 4.25% + 2.1%/1.5 > 5.65% in 30 months time ..

if 1 year fixed rate > 4.25% + 2.1%/1 > 6.35% in 36 months time ...

Then it could be the wrong decision for you....

Thanks a lot for going through the trouble of all that, but i'm sorry, i'm going to have to say ........... what?!? LoL. I'm not usually mathematically challenged, but you just stumped me with all these random figures.


Anyway, when would be the best time to go fixed?

I know the rates were good (as they could be) around April last year & then they obviously dropped, for instant access.

Does the same generally happen for fixed rates (i.e. better waiting for April) or is now a good a time as any?

And i wouldn't (can't see myself anyway) pull the money through needing it. It'd only really be if rates skyrocketed. I wont put more than i can afford in a fixed rate.

masonic

K_P83 wrote: »

Thanks a lot for going through the trouble of all that, but i'm sorry, i'm going to have to say ........... what?!? LoL. I'm not usually mathematically challenged, but you just stumped me with all these random figures.

I think they are the rates you'd need to find to make it worthwhile switching out of the fixed rate early?

Nine_Lives

Ah cheers. I can go with that.

Any idea on best time to go for a FRISA? I don't want to jump for the Halifax now, only to find the same duration will be say 0.5-1.0% higher in a month & halfs time.

masonic

It's difficult to say. Perhaps they have already priced a base rate rise into their fixed rates. You could end up waiting a long time.

missile

K_P83 wrote: »

Ah cheers. I can go with that.

Any idea on best time to go for a FRISA? I don't want to jump for the Halifax now, only to find the same duration will be say 0.5-1.0% higher in a month & halfs time.

There is no best time, rates fluctuate but IMHO you are unlikely to see 5.25% FRISA any time soon. Rates could go down. Halifax could withdraw this product at any time. Who knows

Nine_Lives

Thanks to all who have helped.
A big factor in how much i can lock away and for how long - is when we (me & the gf) move out of my folks place.
So i had the discussion with her last night & there's no set date. She'd prefer within 2years, but it's all up in the air. I have 25k in savings & in the past 5-6 years (when she moved down) i've gone to 25k from 5k. In that time, she's put 3k away (& cleared a 1-2k debt, so in a way she'd be on 5k) - but we're on similar monthly wages (in other words, i save, she spends).

Which makes moving out difficult.

Unfortunately i'd probably not lock this away as i don't know when we'll be moving out, plus i don't know how much we'll need - and i don't know how much she'll save. She said it's time to pull her finger out this year, but actions speak louder than words, so we'll have to see how it goes.

Thanks to you all for your help anyway.

bendix

I locked in for five years in Jan 2010, but it was for only half my cash reserves and I got a rate of 7.3%

DiggerUK

bendix wrote: »

I locked in for five years in Jan 2010, but it was for only half my cash reserves and I got a rate of 7.3%

Which country was that then.