We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Anglo Irish Bank 1 year fixed rate bond - 6.45%
Rhino666
Posts: 571 Forumite
Well that's it really - looks like the best rate around and I am tempted.
Of course there is likely to be another 0.25% base rate rise over the next couple of months but that already largely appears to have been factored in with this rate.
They also have a 2 year bond @ 6.35% which implies that recent rate rises may well peak in the very near future.
Of course there is likely to be another 0.25% base rate rise over the next couple of months but that already largely appears to have been factored in with this rate.
They also have a 2 year bond @ 6.35% which implies that recent rate rises may well peak in the very near future.
PLEASE DO NOT STEAL
The Government will not tolerate competition
Always judge a man by the way he treats someone who is of no use to him
The Government will not tolerate competition
Always judge a man by the way he treats someone who is of no use to him
0
Comments
-
Well that's it really - looks like the best rate around and I am tempted.
Of course there is likely to be another 0.25% base rate rise over the next couple of months but that already largely appears to have been factored in with this rate.
They also have a 2 year bond @ 6.35% which implies that recent rate rises may well peak in the very near future.
true providers often factor in a forthcoming rate rise when they launch a new product ( year or less) i dont agree about your theory on the 2 year fix cos very few people have managed to forecast 6 months in advance with any certainty, swings and round abouts providers hope to gain on some products more than they will gain on another, some people like the certainty of 2 year or 3 year fixes personally i wouldnt fix longer than 12 months and then only if i had funds high enough that couldnt be fed into 6.5-7% reg savers very quickly, 6.45% is in my opinion very tempting for anyone with a very large sum to invest :cool:0 -
bristolleedsfan wrote: »i dont agree about your theory on the 2 year fix cos very few people have managed to forecast 6 months in advance with any certainty
If you work it out offering 6.35 for 2 years whilst offering 6.45 for 1 year = approx 6.25 for the second year, bar a few geeky adjustments :-)
From my experience banks do not offer fixed rate investments without an eye to the future. I have been using this type of investment for about 20 years now and the banks judgement of rates is usually accurate to conservative. This indicates to me that Anglo Irish expect rates to top out soon and stay steady or even drop. I wouldn't argue with that.PLEASE DO NOT STEAL
The Government will not tolerate competition
Always judge a man by the way he treats someone who is of no use to him0 -
If you work it out offering 6.35 for 2 years whilst offering 6.45 for 1 year = approx 6.25 for the second year, bar a few geeky adjustments :-)
From my experience banks do not offer fixed rate investments without an eye to the future. I have been using this type of investment for about 20 years now and the banks judgement of rates is usually accurate to conservative. This indicates to me that Anglo Irish expect rates to top out soon and stay steady or even drop. I wouldn't argue with that.
the bank offering the 2 year fix will be hoping re 2 year fix that at end of year 1 and during year 2 interest rates will be higher than they are atm, who knows at end of year 1, 1 year fixes may be up to 7.25%, so if someone fixes for 2 years at 6.35% they wouldnt have done very well out of it, who knows what the economic position will be in 12 months time, i read in week that shops are still increasing prices cos demand is there for them to do it so that will put upward pressure on inflation :cool:0 -
I think that if rates rise as you seem to suspect there will be a lot of repossessed property around soon because presumably you expect the base rate and therefore lending rates to rise as well ? I don't expect rates to rise much above their current levels - just my opinion of course :-)PLEASE DO NOT STEAL
The Government will not tolerate competition
Always judge a man by the way he treats someone who is of no use to him0 -
I think that if rates rise as you seem to suspect there will be a lot of repossessed property around soon because presumably you expect the base rate and therefore lending rates to rise as well ? I don't expect rates to rise much above their current levels - just my opinion of course :-)
i didnt sat that i said "maybe", i also said nobody can predict with any certainty
We are overdue a housing market price "correction" repossessions can occur for more than one reason ie people can lose their jobs, none or very little of the payments get paid for a certain period of time nothing to do with interest rates, divorces can lead to house repossessions0 -
bristolleedsfan wrote: »i didnt sat that i said "maybe", i also said nobody can predict with any certainty
We can't but you seem to be saying that the bank is wrong or trying to hoodwink customers ? Continued interest rate rises would just be counterproductive - I can see a further 0.25% rise but any more would cause problematic side effects IMO.bristolleedsfan wrote: »We are overdue a housing market price "correction" repossessions can occur for more than one reason ie people can lose their jobs, none or very little of the payments get paid for a certain period of time nothing to do with interest rates, divorces can lead to house repossessions
We have been overdue a housing correction for about 3 years now but whilst the good old supply and demand factors have an influence it ain't going to happen !! I would say that a period of stagnation would be the most likely scenario - just my opinion. If you really believe that a housing correction is imminent, I take it you have sold your property and are now living in rented accommodation ?PLEASE DO NOT STEAL
The Government will not tolerate competition
Always judge a man by the way he treats someone who is of no use to him0 -
We can't but you seem to be saying that the bank is wrong or trying to hoodwink customers ? Continued interest rate rises would just be counterproductive - I can see a further 0.25% rise but any more would cause problematic side effects IMO.
We have been overdue a housing correction for about 3 years now but whilst the good old supply and demand factors have an influence it ain't going to happen !! I would say that a period of stagnation would be the most likely scenario - just my opinion. If you really believe that a housing correction is imminent, I take it you have sold your property and are now living in rented accommodation ?
buy 2 let investors have kept the market up, many are selling up now, lifetime morgages and parents putting down deposits is also keeping prices up
nobody in power have worried about previous house price corrections have they ( inflation is something worth worrying about) its in more peoples interests that their is a house price correction than those who would suffer cos of one. its possible that "stealth tax " increases might reduce no of interest rate rises, reason they started doing 0.25 rises were so they were hardly noticible hence reason they having little or slow effect
nope ud have to be ext lucky to risk going into rented in hope of a price crash many saw it coming in 80s cos it was obvious, ive bought my hse outright is only a ex council hse i would like a price crash to occur in 2 years time as i have a 25 year endowment paying out in july 2009 + savings i have + equity in house would like ida of moving up in a dead market
house price crash is unlikely this side of next election imo
i only said that personally i wouldnt go for a 2 year fix for reasons stated, if a 2 year fix at 7% came out this week many would be tempted0 -
Short-term rates have been higher than long-term rates for a long time now, and interest rates don't seem to have peaked yet... (although "we have reached the peak" has been forecast after every rate increase since last August).They also have a 2 year bond @ 6.35% which implies that recent rate rises may well peak in the very near future.
Certainly rates over 6% would cause problems, but what do you suggest - that the BoE stop targeting even mickey-mouse inflation? Not sure where the property thing crept in, but absolutely no direct connection with CPI - as long as (C)heese goes up faster than (P)lasma tellies come down, (I)nflation will go up and interest rates won't go down**
** in theory they should go up, but the "target" seems to have moved from CPI 2% to an average of 2.5%+ with a bit of a "panic" 0.25% increase if it goes over 3%, and "who cares about RPI" - only the plebs cop for that...0 -
** in theory they should go up, but the "target" seems to have moved from CPI 2% to an average of 2.5%+ with a bit of a "panic" 0.25% increase if it goes over 3%, and "who cares about RPI" - only the plebs cop for that...
crossed my mind that inflation targets could keep getting changed in order to avoid interest rates going to high, we all know mr brown hasnt waited all this time for the keys to no 10 only to be their for a short tenure :rotfl:0 -
If you work it out offering 6.35 for 2 years whilst offering 6.45 for 1 year = approx 6.25 for the second year, bar a few geeky adjustments :-)
Taking account of 'geeky adjustments' like loss of interest whilst cheque in post and clearing this reduces annual payout to approx 6.2%on 1 year and 6.22% on 2 year (assuming that 1 week's interest is lost at either end of transaction).
Anyone know if Anglo will permit BACSs transfers in ??0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards