Term deposit account

enthusiasticsaver

I have about £50-60k to invest for up to 3 years and not willing to risk the stockmarket. It is earning 3.2% gross until mid June so I have a few months to do some research. I won't need to touch it until 2016 at the earliest.

I have a fully funded isa and due to open another one tomorrow for 2013-2014 and some index linked national savings, some of which are due to mature this year so want to find a fixed term account where I can put this away and earn a "reasonable" return at least above inflation. Any suggestions? I don't want to look at Santander as it will take me above the 85k including my isa and current account which pays 3%.

I was looking at the Britannia 3 year account but I think this has been withdrawn and whereas Halifax has been good in the past the rates are rubbish now.

alanq

See Quick link:"Top Savings Accounts" above.

enthusiasticsaver

Yes, I checked the quick links but as inflation is 3.1% and the best paying one apart from my 3% current account is 2.5% this does not even keep up with that. This is my early retirement fund so I don't want to take risks with it so undoubtedly I will need to accept it will be worth less in three years time no doubt because of the government's monetary policy. I don't have a mortgage any more otherwise I would pay that down instead.

alanq

You said that you "want to find a fixed term account". The best (least worst) of those are listed in that link. If there were any 100% safe ways of getting inflation-beating returns we would all be flocking to them.

kidmugsy

enthusiasticsaver wrote: »

as inflation is 3.1% and the best paying one apart from my 3% current account is 2.5% this does not even keep up with that. This is my early retirement fund so I don't want to take risks with it so undoubtedly I will need to accept it will be worth less in three years time no doubt because of the government's monetary policy.

If it's meant to generate income after early retirement why are you so reluctant to use equities? On the other hand, if you mean that it's capital that you'd want to spend down after early retirement, I quite understand. But you'll not find anything that pays more than inflation and is free from the risk of capital loss. Physical Gold and Silver ETFs have done us well in the last few years, but they aren't remotely free of risk. I'm tempted by foreign currency investment, but having capital in one currency while your liabilities are in another is necessarily risky.

This is the world we have been led into by Mr Greenspan, Mr Blair and Mr Brown, their banking friends, masses of subprime mortgage-borrowers, and the electorates who condoned these bozos and their antics.