Savings - fixed rate bonds

steviex

I have a sum of money to invest, probably in a fixed rate bond, and this caught my eye on one of the comparison sites.

Vanquis Bank high yield - 5 year fixed rate bond

Has anyone had any dealings with these for savings, this looks like a good deal?

Sorry, I can't post a link as I'm a newbie.

colsten

How much money is involved?

How much have you got in your instant access emergency cash fund?

When do you expect to want to spend some / all of the money?

Would you consider investing in funds etc rather than saving cash?

How much of your ISA allowance have you used?

What tax rate are you on?

Are you working as as employee?

What provisions are you making for your pension?

steviex

colsten wrote: »

How much money is involved?

How much have you got in your instant access emergency cash fund?

When do you expect to want to spend some / all of the money?

Would you consider investing in funds etc rather than saving cash?

How much of your ISA allowance have you used?

What tax rate are you on?

Are you working as as employee?

What provisions are you making for your pension?

I have £20K to invest, I don't need access to it as I have other funds. I have recently used my ISA allowance. I am an employee paying 20% tax, I am contributing to one of the recent new pension schemes but I have another (previous) works pension which has just matured.

colsten

Thanks for the additional info.

If I were in your shoes, I wouldn't fix at 3.16% AER for five years as currently available instant access and regular savings accounts accounts pay a lot better than that right now on £20K, even before a possible interest rates rise sometime next year or so.

I would put as much as I am allowed extra into my work pension, and the rest into a personal pension.

ManAtHome

Shawbrook 5 year is slightly better at 3.2%, but have a look at current accounts instead - plenty of threads about Santander, TSB, Lloyds, Nationwide, Tesco etc paying 3-5% for instant access.

steviex

Thanks for all your input. I will check out some of the current accounts as mentioned.