3 year Fixed Rate Bonds

BlueView_2

Current fixed rate bonds seem to be issued for a few weeks, withdrawn and then lowered.
Recently, AA 3 year 4% has been lowered to 2 year 3.6%, whilst Saga 3 year 4% has dropped to 3.8%, and Halifax 3 year 4% has fallen to 3.85%.
All the above are part of the Halifax group which also owns Birmingham Midshires, so be careful in spreading money in them all as £85k is their total combined protection.
If anyone finds a 4% fixed rate 3 year bond in 2012 perhaps they can let me and others know in this thread.
Methinks we may be chasing 3.5% 3 year bonds soon, though.:(

somethingcorporate

Keep an eye out here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#fixed

You're right though, the halifax 3 year 3.85% is about the best at the moment.

innovate

somethingcorporate wrote: »

You're right though, the halifax 3 year 3.85% is about the best at the moment.

Can still get better if you look at non-high street names, without sacrificing FSCS protection. E.g. Punjab National Bank 3 years 4.25%

http://www.money.co.uk/savings-accounts/fixed-rate-bonds.htm

alanq

BlueView wrote: »

Current fixed rate bonds seem to be issued for a few weeks, withdrawn and then lowered.
... whilst Saga 3 year 4% has dropped to 3.8%,

That's 3.60%! Until a couple of days ago there was a 2-year 3.80% offering.

Ifts

BlueView wrote: »

Current fixed rate bonds seem to be issued for a few weeks, withdrawn and then lowered.

Yes you do have to be quick, a few weeks is good going, some accounts have been withdrawn after a day once they get posted on here and other comparison sites!

The AA 3 year fix @ 4% had been around for while now, to get 4% on a fixed rate bond from the Halifax you would have to lock your money away for 5 years.

Couple of 3 yr fixes @ 4% (but as previous poster said non-high st names although they do have FSCS protection):
http://moneyfacts.co.uk/compare/savings/fixed-rate/medium-term-bonds/


Looks like fixed term bond rates are on their way down:

As banks and building societies pull the plug on best buy savings deals, why exactly are rates plunging?
Read more: http://www.thisismoney.co.uk/money/saving/article-2196345/Why-savings-rates-falling.html#ixzz25N7KO300

Zebra

Wondering what others' views on 4 and 5 year bonds are.

Rates have been low for last three years now and I can't see them increasing for at least three more years.

Is it worth tieing in for longer to squeeze an extra 0.1% or so?

Ifts

Zebra wrote: »

Is it worth tieing in for longer to squeeze an extra 0.1% or so?

Your guess at where the rates are going is as good as anyone else on here. At current rates I tend to go for 2 or 3 year bonds, the rates on 4 or 5 year terms is not attractive enough for me to tie up the money.

If you do end up going for a 4 or 5 year fixed rate bond, make sure you definitely wont need the funds until the maturity date, or go for one where withdrawals are allowed (subject to a charge).

savetilibleed

alanq wrote: »

That's 3.60%! Until a couple of days ago there was a 2-year 3.80% offering.

Yep, thankfully got in before the close, posted off, and money being invested on 23/08/12, having scraped money off the floor and from inside the mattress :rotfl: to fund before another bond matured on 31/08/12. Saga FR deals often last a while, but there was no way this one was going to when all others around it were falling below to 3.6% or worse, as theirs now has to 3.6% as of 31/08/12.

badger09

Ifts wrote: »

Your guess at where the rates are going is as good as anyone else on here. At current rates I tend to go for 2 or 3 year bonds, the rates on 4 or 5 year terms is not attractive enough for me to tie up the money.

If you do end up going for a 4 or 5 year fixed rate bond, make sure you definitely wont need the funds until the maturity date, or go for one where withdrawals are allowed (subject to a charge).

Agree - crystal ball anyone?

I too usually go for 2, or max 3 year fixes. The differential between those and the 5 year fixes isn't worth giving up the flexibility, for me at least.

I ladder where possible but its not easy to get the best rates every time, especially when some deals are pulled after only a couple of weeks.

That way, if I decide to splurge a chunk on a new car/world cruise/toyboy :eek: I can. I might have to wait a couple of months until maturity by which time I should know whether I want, (really really want ) to go ahead.

Zebra wrote: »

Is it worth tieing in for longer to squeeze an extra 0.1% or so?

Nope - not for me

savetilibleed

badger09 wrote: »

I too usually go for 2, or max 3 year fixes. The differential between those and the 5 year fixes isn't worth giving up the flexibility, for me at least.

Yep not worth it now. We went for a 5 year fix three years ago and damn glad we did. Worrying really as I have a 3 year 4.5% one ending end December.