Fixed term savings 'worth it'?

JustAnotherSaver

I know people here don't like terms like 'worth it' but it's the only way i can think to phrase it.

I've a reasonable amount of money in total. Santander 123s maxed out as well as TSBs & Lloyds.

I don't need access to all that money, only some of it.

I just wondered with all this uncertainty around the interest rates & I wonder if Santander will spark a domino effect

would it be wise to be looking at something like the 5yr fixed at 2.2% & putting an amount in that?

newuser78

Nobody has a crystal ball unfortunately so nobody knows when interest rate will go up or down.

I am not an expert but due to Brexit and the uncertainty, I personally don't think we will see any interest rate going up for a long while.

I myself got a 3-year fixed rate for 2% just before the BoE announcement of base interest rate cut - I think I made the right call as 2 days after, the bank stopped offering this product. I was initially tempted by a 5-year 2.5% fixed but I wanted to put aside some for investment.

Malthusian

You can get 1.2% on instant access and for me an extra 1% a year isn't worth the risk that interest rates might go up or I might want access to the money at some point before 2021.

If I had money that I wanted to put away for five years then I would put it in the stockmarket. While there is a real risk of a loss over a 5 year period, I can't think of a scenario in which I would be happy to lock money away for five years but totally unable to leave it for six years or seven years or however long it took for the stockmarket to recover, if I was unlucky enough to invest just before a 2001 / 2008 style prolonged crash.

Jox

How about opening a First Direct current account and then a First Direct Regular Saver, it's 6% interest, you can pay a max of £300 a month in and the interest is paid after a year.

JustAnotherSaver

Already have 2 of those (first direct reg savers) unfortunately.

I'm currently doing what I have to in order to meet nationwides regular saver too.

I thought about stocks but didn't want to take that risk with this lump to be honest.

Thrugelmir

Take what's ever on offer that suits your circumstances. Better to guarantee some additional return than none at all.