Crystal ball time - interest rates

AnotherJoe

I've got about £60k i dont need for 3 years. But will need it then.

In the past that was easy,  put it in a  3 year fixed account. Job done.

However 3 year accounts now dont seem to pay any better than 2.

So the crystal ball Q is, take out a 2 year fixed and then a 1 year at what then will hopefully be higher rates, but may not be. Or just a 3 year now?

I'm maxxed on PB's and this years ISA. I will pay tax on the interest.

First world problem i know.

surreysaver

Maybe half and half?
Half in a three year fixed, and the other half in a two year? 

Paenymion

I'd go two year and see what things are like after that.  Source: crystal ball.

blue_max_3

Maybe find a 3 year fix that allows the account to be closed (usually losing 6mths interest).
I have a feeling it isn't going to make a lot of difference if they do creep up a little.
Or all on red?

colsten

Best 2-year: 1.6%

Best 3-year: 1.75%

https://moneyfacts.co.uk/

Have a look at this thread, too: https://forums.moneysavingexpert.com/discussion/6146372/25-hl-active-savings-offer-expires-17-06-2020

Sailtheworld

Can you bring forward the spending and get a longer utility value out of whatever you're buying?

Otherwise I'd be 2 year fix and add it to the list of problems I'm grateful for.

AnotherJoe

Nope, no possibility of bringing forward the purchase (it wont be my purchase)

AnotherJoe

Thanks all. Think I'll go for a 2 year Atom at 1.5% * I've already got some Atom fixes so the ease of use is known, and one less provider to deal with outweighs the small amount of extra return i could get.

DAMN. Just realised I'll be breaching he £85k limit. hmmmmmm

* especially as the 3 year is 1.45% !

DiggerUK

Diggers crystal ball sez.....
BOE Base Rates will stay down, quite probably zero or sub zero.
Personal borrowings, mortgages etcetera will not get much cheaper, quite probably trend up.
Savings rates will continue to trend down..._

Swipe

AnotherJoe said:

DAMN. Just realised I'll be breaching he £85k limit. hmmmmmm

* especially as the 3 year is 1.45% !

If it's just over by a few hundred quid I really wouldn't sweat it personally

AnotherJoe

Yeh, Ive done the maths* this morning and its £3k over. I'll risk it for simplicity.

* one addition sum really