Fixed Term Deposit Experience ...

Ifts

meunier wrote: »

... and Secure Trust have now removed any Term Deposits (or Bonds as they call them) from their product offerings. It is amazing how rapidly this market shifts.

I've seen some FRB's get withdrawn the same day they get launched.

Some more Fixed Rate Savings Bonds here:

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

chucknorris

meunier wrote: »

I have had a variety of five year fixed term deposits that (sadly) are coming due as there is no way I could get anything like the interest they then were paying.

even though I am totally risk averse.

I read your other thread, so I am aware of your circumstances:

meunier wrote: »

I am to be 60 years old in July and am in decent health. I own my own home in London and have no mortgage. For 12 years I have lived off the interest of my savings and primarily done charity work. I teach occasionally on the University level but this makes no more than £3,000 per year. I run a charity but do not take a salary. I have £290,000 in savings at the moment and these are spread across a series of fixed five year term instruments paying between 4 and 4.5 percent interest on a monthly basis.

I just don't get why you are storing your wealth in savings accounts, over such a long duration. I think you should switch a substantial amount into equities to receive dividend income. I can see that you won’t pay income tax with savings rates (from say circa 2%). But you wouldn’t pay any income tax with dividend income either, because the first £5k of dividend income is tax free, you can also invest in pension and ISA’s, just in case that tax free £5k changes in a few years. You also have the possibility of capital growth with equities.

At 60 (I'm 59 in January) your horizon is far enough away not to be overly concerned about market dips. I wouldn't say that you were risk averse, I would say the opposite, because you have chosen savings interest which is virtually guaranteed to under perform dividend income.

I'm also a university lecturer, I would also look into investing in buying additional pension in the TPS (I bought the max allowed, it really is a very good deal).