Nationwide bond maturing - low rate offered!

nilrem_2

Have a Nationwide bond maturing shortly. Best they are offering is 2.80% (2.24% after tax) for a 3 year bond!

I have looked around and there appears to be a complete dearth of fixed rate accounts.

I am getting 2.25% after tax with my Natwest esaver for the next 12 months so am thinking about shifting it there and hoping that in the next 12 months there may be a better fixed rate offered.

Only problem with the above is if rates fall lower then I shall be even worse off after 12 months. I depend on my interest for income.

I can't be the only one in this situation, what are others doing?

Any advice much appreciated.

opinions4u

I'd go easy access and wait.

harz99

nilrem wrote: »

Have a Nationwide bond maturing shortly. Best they are offering is 2.80% (2.24% after tax) for a 3 year bond!

I have looked around and there appears to be a complete dearth of fixed rate accounts.

I am getting 2.25% after tax with my Natwest esaver for the next 12 months so am thinking about shifting it there and hoping that in the next 12 months there may be a better fixed rate offered.

Only problem with the above is if rates fall lower then I shall be even worse off after 12 months. I depend on my interest for income.

I can't be the only one in this situation, what are others doing?

Any advice much appreciated.

I'd second opinions4u on that; but you may just want to look at providers like Aldermore and Birmingham Midshires/Saga first to see if they can do better than 2.8 for a longer term.

xylophone

http://www.thisismoney.co.uk/money/saving/article-1583868/Best-savings-rates-Monthly-income-saving-accounts.html

nilrem_2

xylophone wrote: »

http://www.thisismoney.co.uk/money/saving/article-1583868/Best-savings-rates-Monthly-income-saving-accounts.html

I always look there but there are only one or two fixed rates now whereas a few weeks ago there was a huge choice.

Banks don't want savers cash when the BOE gives them plenty!

Reaper

What about Punjab...
http://www.pnbint.com/fixed-deposits.asp

innovate

Have you looked at the indian banks? Have you looked at the MSE best buy article? Last I saw at Punjabi National was 3.5% for 3 years, and State Bank of India is 3.65% AER for 3 years.

If you need to stay "british" despite the FSCS safety offered with the above: How much money is involved? Have you maxed your 3% AER in (instant access) Lloyds Vantage and Santander 123 accounts?

evenasus

nilrem wrote: »

I have looked around and there appears to be a complete dearth of fixed rate accounts.

I know how you feel. Although I don't require the interest to supplement income.

I've had a couple of bonds mature recently - and another one maturing next week.
The last one to mature, I transferred to the highest interest easy access account I held.

Northern Rock used to be quite good for fixed rates.
Now Virgin have taken over, there are none on offer.

The BoE rate hasn't been reduced since March 2009 - not that it could drop much further.
So how come savings interest rates have been continuously reduced so much and probably will continue to be?

gozomark

"So how come savings interest rates have been continuously reduced so much and probably will continue to be?"

cheap funding from BoE to the banks means they don't need to borrow from you so aggressively

Speculator

When our Fixed rate bonds mature, I deposit the money into our 5 x 4% vantage a/cs and drip feed it into various regular savers. (12 x Derbyshire 5%, 2 x Stroud and Swindon 4.5%, 2 x Saffron 4%, 2 x Chorley 5%) £7200 pm.

nilrem wrote: »

Only problem with the above is if rates fall lower then I shall be even worse off after 12 months. I depend on my interest for income.

I can't be the only one in this situation, what are others doing?

Any advice much appreciated.

le_loup

nilrem wrote: »

Only problem with the above is if rates fall lower then I shall be even worse off after 12 months. I depend on my interest for income.

Hedge your bets.
Put half in the best fixed and the other half in the best instant access. Then if rates go up you win on half, down and you lose on half.