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fixed rate bond NR 5.3%

we have £100,000 in a Northern Rock 1 year bond which matures on 1 August

2007 if we take the money out

we will lose 2 months interest,would this be

foolish, if we then put it in a bond at 6.3%?
please do not pick on me for my grammar,I left school at fifteen and worked in the building trade for 55years ,

Chalk and slate csc:D

Comments

  • tom188
    tom188 Posts: 2,330 Forumite
    Yes, by the time you have considered transfer times you will probably lose money doing it this way. best to wait until it matures then move on.
  • oldfella
    oldfella Posts: 1,534 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    no probably about it - 2 months at 5.3% is is £883 lost, compared with a gain of £166 for the extra 1%
  • Yogibear
    Yogibear Posts: 459 Forumite
    Part of the Furniture 100 Posts Photogenic Combo Breaker
    thank you to both of you:D
    please do not pick on me for my grammar,I left school at fifteen and worked in the building trade for 55years ,

    Chalk and slate csc:D
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