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

bendix

Details, details. I have my assets spread all around the world, but only in places that I have close personal ties to.

DiggerUK

bendix wrote: »

Details, details. I have my assets spread all around the world, but only in places that I have close personal ties to.

Oh Bendix, Bendix...you really should be more circumspect.
Watch out, watch out, the Diggers about.

bendix

DiggerUK wrote: »

Oh Bendix, Bendix...you really should be more circumspect.
Watch out, watch out, the Diggers about.

Huh? Not sure what you mean?

I've always made it clear I keep my assets very mobile. I work in the UK at the moment, but only have a quarter of my assets here - the rest in invested in a range of currencies and asset classes in places I will either live in future or that I'm comfortable don't reflect any major currency risk.

It always amazes me that people preach diversification and think it applies to only asset classes or funds. On the contrary, currency risk management is equally - if not more - important in this global economy.

DiggerUK

bendix wrote: »

Huh? Not sure what you mean?....

You know exactly what I mean, this is what you posted "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%" fully expecting this hacks trick to go unnoticed. This thread is about UK rates.

Don't try butter wouldn't melt in your mouth tactics with me.
You posted as a braggart and a troll. Unacceptable behaviour.
.

bendix

It is not about UK rates. It is about a question whether someone would lock in for four years. Given interest rates are expected to rise around the world it is nothing about a single geography and everything about the strategic considerations in locking in now for a longer term.

Surely the question can only be answered in relation to the rate you locked in at.

For what it's worth, I fully expect rates to increase in the country I secured that rate too, but I made the judgement call that the rate was sufficiently high for me to be comfortable locking in for a long period (I traded off potential upside for certainty of income). Secondly I was comfortable doing it because it was only on half my cash-invested assets. I roll over the balance on 3-5 month terms which are currently around 5.3%, and rising.

bigfreddiel

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%

blimey - I missed that one - who was it that offered 7.3% FRISA in jan 2010?

fj

bendix

bigfreddiel wrote: »

blimey - I missed that one - who was it that offered 7.3% FRISA in jan 2010?

fj

As my posts above state. It wasn't in the UK. I have banking arrangements in several countries. This was with the Bank of New Zealand, one of NZ's big four. The actual advertised term was 6.5%, but they made me a special offer of 7.3%.

Again, though, it's not about the rate per se. The question asked whether one is prepared to lock in for a longer time, given that one can assume rates are on the rise. My answer is yes, so long as you get a good rate to lock in at.

StevieJ

I have been happy with the 4 year fixed ISA I took out with the Halifax four years ago 6.5%.

bendix

StevieJ wrote: »

I have been happy with the 4 year fixed ISA I took out with the Halifax four years ago 6.5%.

And that's precisely the point Stevie . . one can only base it on one's own feel about these things.

I fully expect 5 year term deposit rates in NZ to go above 7.3% by the time my deposit matures in Jan 2015, but what I don't expect is that overall I will have lost. At the moment the five year retail rate from the same provider is 6.5%. The four year rate (because I only have four years remaining) is 6%. Do I expect the one year rate in Jan 2014 to be 7.3%. Not particularly because shorter maturities have a lower rate.

At times you just have to make a judgement call and go with it, and avoid paralysis by analysis.

Actually, because the interest is compounding quarterly, the real rate is closer to 7.5%

tashalove

Hello!

Sorry for hijacking this thread but I just noticed Halifax have a new 4 year fix of 4.25% out now. Would it be worthwhile giving this a shot or would interest rates be much higher than this in 2015?