The Top Fixed Interest Savings Discussion Area

francoghezzi

Probably far more appealing the new 3 and 4-year bond at 4.9 and 4.8 from HTB that are online with, yes, an 18-month 5.01% bond

jak22

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

SJMALBA

Charter:
1 year - 4.93%
2 Year - 4.95%
5k min.

https://chartersavingsbank.co.uk/Products/FixedRateBond

kidwell25

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Band7

kidwell25 said:

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Agreed. Or Isbank via Raisin, 4.95%

kidwell25

Band7 said:

kidwell25 said:

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Agreed. Or Isbank via Raisin, 4.95%

Indeed - I should have clarified that I'd discounted Isbank on account of already having maxed out my FSCS protection on their 7 year bond last month. Interestingly that one only gave the option of paying interest away annually, but conversely their 5 year bond looks to only pay out at maturity.

merchant_ac

kidwell25 said:

Band7 said:

kidwell25 said:

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Agreed. Or Isbank via Raisin, 4.95%

Indeed - I should have clarified that I'd discounted Isbank on account of already having maxed out my FSCS protection on their 7 year bond last month. Interestingly that one only gave the option of paying interest away annually, but conversely their 5 year bond looks to only pay out at maturity.

'Interest is calculated daily and paid annually back to your Raisin UK account.' That is for both the 5 and 7 year accounts, and probably the other terms but I haven't checked.

TiVo_Lad

kidwell25 said:

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Don't forget the tax implication though. If you get the interest annually (and can access it), that will count towards your savings interest allowance in that tax year. If it's compounded into the bond AND you can't access it until then end of the fixed period, you could end up paying tax on that interest at the end of the fixed period.

kidwell25

merchant_ac said:

kidwell25 said:

Band7 said:

kidwell25 said:

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Agreed. Or Isbank via Raisin, 4.95%

Indeed - I should have clarified that I'd discounted Isbank on account of already having maxed out my FSCS protection on their 7 year bond last month. Interestingly that one only gave the option of paying interest away annually, but conversely their 5 year bond looks to only pay out at maturity.

'Interest is calculated daily and paid annually back to your Raisin UK account.' That is for both the 5 and 7 year accounts, and probably the other terms but I haven't checked.

Ah ok - the account information on Moneyfacts says "interest must be compounded" but looks like that's an error!

Band7

kidwell25 said:

merchant_ac said:

kidwell25 said:

Band7 said:

kidwell25 said:

jak22 said:

Tandem 5 YR 5.0% (1 YR 4.5%, 2YR 4.6% 3YR 4.65%)

Was about to jump on the 5 year bond, but see that interest must be paid away annually. So if I don't actually need the annual income, and on the assumption that rates seem likely to drop over the coming 5 years, the United Trust Bank at 4.9% that *can* be compounded is still the better option, correct?

Agreed. Or Isbank via Raisin, 4.95%

Indeed - I should have clarified that I'd discounted Isbank on account of already having maxed out my FSCS protection on their 7 year bond last month. Interestingly that one only gave the option of paying interest away annually, but conversely their 5 year bond looks to only pay out at maturity.

'Interest is calculated daily and paid annually back to your Raisin UK account.' That is for both the 5 and 7 year accounts, and probably the other terms but I haven't checked.

Ah ok - the account information on Moneyfacts says "interest must be compounded" but looks like that's an error!

There's also conflicting information in the KPI as it also says "The estimated balance after 60 months on a deposit of £1,000 is £1,247.50." Best to clarify with Raisin.