The Top Fixed Interest Savings Discussion Area

soulsaver

SickGroove said:

Charter Savings Bank...

1 Year Fixed Rate Bond Annually 4.46% / Monthly 4.37% Gross

2 Year Fixed Rate Bond Annually 4.50% / Monthly 4.41% Gross

I have a one year £80K fix maturing in a few weeks with them so hopefully I'll receive my maturity options email soon...

I'm looking at 3 year laddering system, so can I split some of my funds into the above 1 & 2 year fixes and put the remaining funds in a 3 year fix elsewhere? Ie can have have two different bonds with the same provider?

It depends on their personal tax rate but someone with those numbers would likely be liable to tax on savings interest. If so, remember that a 4.0% (or more) ISA is worth 5.00% for comparative purposes, and more for higher rate payers.

SickGroove

cricidmuslibale said:

SickGroove said:

Charter Savings Bank...

1 Year Fixed Rate Bond Annually 4.46% / Monthly 4.37% Gross

2 Year Fixed Rate Bond Annually 4.50% / Monthly 4.41% Gross

I have a one year £80K fix maturing in a few weeks with them so hopefully I'll receive my maturity options email soon...

I'm looking at 3 year laddering system, so can I split some of my funds into the above 1 & 2 year fixes and put the remaining funds in a 3 year fix elsewhere? Ie can have have two different bonds with the same provider?

@SickGroove Yes, you can definitely put some of your funds into the above 1 and 2 year fixes and then put the remaining money into a 3 year fix with another savings provider. And yes, you can certainly have two different bonds with the same provider; e.g. right now I have five different fixed rate bonds (and one fixed rate cash ISA) with Coventry Building Society.

Just to add that the minimum interest-earning balance for the two Charter Savings Bank Fixed Rate Bonds mentioned above is £5,000 and the maximum balance is £1,000,000.

Charter are currently also offering the option of an 18 Month Fixed Rate Bond (with the same minimum and maximum balances) paying either 4.39% gross monthly interest (4.48% AER) or 4.48% gross annual interest (4.48% AER).

Think I might just re-invest the maturing 80K currently held with Charter @ 2.04% split into a laddering system into their 1 year, 18 month & 2 year fixed rate bonds with interest paid monthly to my nominated account for all 3 fixes.

jak22

I wonder if laddering systems are being over-thought,. Last year when rates were rising steadily it made sense to, for instance, put smaller amounts into fixes every three months or so rather than into one large fix that was rapidly overtaken. But now rates look more stable, or may have peaked at the end of last year, then dipped to rise a little in the last couple of months.

So unless funds will actually be needed in 12 months or 18 or 24 etc it could be that the rates available when they mature wont be any better than just taking out a longer term fix at the best rate right now. 

gt94sss2

HSBC 1 year fix 4%
2 year 4.1%

https://www.hsbc.co.uk/savings/products/fixed-rate/

flobbalobbalob

Charter 1 year fix now 4.46% AER

2010

flobbalobbalob said:

Charter 1 year fix now 4.46% AER

3.56% after basic tax.
Charter have a 1 yr fix ISA @ 4.01%

flobbalobbalob

Virgin 1 year fix ISA 4.11% AER

ChilliBob

flobbalobbalob said:

Charter 1 year fix now 4.46% AER

I've opened and not funded a 1 year from charter three times now, every time I go to fund it with a couple of days left it increases a bit!

intalex

Charter have a zero cooling off period for their fixes, and it's not even worded very well in their general T&Cs, so best to be sure you want in before you deposit anything into their fixes...

SickGroove

2010 said:

flobbalobbalob said:

Charter 1 year fix now 4.46% AER

3.56% after basic tax.
Charter have a 1 yr fix ISA @ 4.01%

Do you know if you can open this Charter ISA now but not fund it until 6th April as I've already maxed out the 22/23 ISA allowance?

I've already got a 1 year fixed savings account open with Charter so hopefully it should be easy to add this to my account