Fixed Term Bonds - Direction?

nbrewitt

I have a couple of Fixed term Bonds with Banks/BS which mature during the next month. Does anyone have any thoughts on which direction rates are likely to go on these type of products next year. I don't need the money within the next 12 months but I would like to know if there might be any slight improvement in rates in the new year.:laugh:

nbrewitt

Sorry I didn't mean Bonds, they are Fixed term Deposits (I'm still old school)

Ifts

Over the last 3-6 months the rates offered on fixed term savings bonds have started to edge higher (only slightly I must add!), so going forward I would say there is more chance of them creeping up than down.

If I had to renew any fixed term bonds currently maturing, at present rates the most I would lock it up for is 2 years.

Wilkins

I think they are likely to go up as FLS tails off, but not by much. I have recently committed to two further term deposits for one year and 16 months, respectively, hoping that late 2014/early 2015 will see a definite firming.

bigadaj

Wilkins wrote: »

I think they are likely to go up as FLS tails off, but not by much. I have recently committed to two further term deposits for one year and 16 months, respectively, hoping that late 2014/early 2015 will see a definite firming.

I'd agree, the mortgage part of fls is winding down early in the new year, which removes the easiest part of the scheme in terms of lenders risk, so I'd expect rates to nudge up early in the new year, nothing dramatic but maybe an extra half point or a bit more.

Then again what do I know!

Ologhai

Ifts wrote: »

Over the last 3-6 months the rates offered on fixed term savings bonds have started to edge higher (only slightly I must add!), so [STRIKE]going forward[/STRIKE] I would say there is more chance of them creeping up than down.

I've removed the unnecessary words for you.

opinions4u

Rates appear to be lower than a few months back IMHO.

Stick it in easy access. Wait until the ISA season.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Ifts

opinions4u wrote: »

Rates appear to be lower than a few months back IMHO.

Maybe the case from High St offerings for example the Halifax has reduced rates 2-3 times in the last couple of months on theirs.
The non High St providers like Aldermore and FirstSave have slightly improved rates.

Wilkins

Ifts wrote: »

Maybe the case from High St offerings for example the Halifax has reduced rates 2-3 times in the last couple of months on theirs.
The non High St providers like Aldermore and FirstSave have slightly improved rates.

Email from Shawbrook today to say that new 2yr term will be at 2.4%, up from 2.3% just a few weeks ago.

opinions4u

Ifts wrote: »

Maybe the case from High St offerings for example the Halifax has reduced rates 2-3 times in the last couple of months on theirs.
The non High St providers like Aldermore and FirstSave have slightly improved rates.

Ah, you can see who's accessing the cheap government funding there then!

Ifts

Wilkins wrote: »

Email from Shawbrook today to say that new 2yr term will be at 2.4%, up from 2.3% just a few weeks ago.

National Counties BS (50th Issue Savings Bond) 2 year fix pays 2.35% (£10k min balance) -

http://www.ncbs.co.uk/savings/fixedterm/50th-issue-savings-bond.aspx

but the maturity date is 30.08.15, not a bad rate for a 20 month fix considering its a better rate than most 2 year fixes -

http://moneyfacts.co.uk/savings/fixed-rate-bonds/