The Top Fixed Interest Savings Discussion Area

t1redmonkey

Shawbrook have brought out a new 1 year fixed term account at 3.26% (annual interest).

Bigwheels1111

Notepad_Phil said:

Bigwheels1111 said:

depending on savings amount and interest rate annual interest payment could be advisable.
Due to the £1000 or £500 tax free interest.

But don't forget that the tax on the 3 years worth of interest all becomes due in the year it matures, so it would need careful consideration and planning to make sure that the lower headline rate really was worth it for tax reasons.

When I take out the fixed rate bonds I need, I will only go for Annual payout.

That wat I dont get caught out.

Notepad_Phil

Bigwheels1111 said:

Notepad_Phil said:

Bigwheels1111 said:

depending on savings amount and interest rate annual interest payment could be advisable.
Due to the £1000 or £500 tax free interest.

But don't forget that the tax on the 3 years worth of interest all becomes due in the year it matures, so it would need careful consideration and planning to make sure that the lower headline rate really was worth it for tax reasons.

When I take out the fixed rate bonds I need, I will only go for Annual payout.

That wat I dont get caught out.

I thought you were referring to the posts regarding the new issue of 3 year NS&I green bonds which were being discussed directly before your post and do not have that option as they only allow you to take the full tax hit in one go in the final maturing year, apologies if you were talking more generally.

km1500

Bigwheels1111 said:

Notepad_Phil said:

Bigwheels1111 said:

depending on savings amount and interest rate annual interest payment could be advisable.
Due to the £1000 or £500 tax free interest.

But don't forget that the tax on the 3 years worth of interest all becomes due in the year it matures, so it would need careful consideration and planning to make sure that the lower headline rate really was worth it for tax reasons.

When I take out the fixed rate bonds I need, I will only go for Annual payout.

That wat I dont get caught out.

...or you could take out eg a 2 or 3 year bond that pays monthly interest

Thumbs_Up

Tandem now 3.30% 1 year fix. Still not taking the bait.

Pompeydave1967

Thumbs_Up said:

Tandem now 3.30% 1 year fix. Still not taking the bait.

What sort of rate would be right for you , I’m in a similar position , just opened a Shawbrook 1 yr fixed but also waiting for higher ones…getting itchy feet now !

Thumbs_Up

Pompeydave1967 said:

Thumbs_Up said:

Tandem now 3.30% 1 year fix. Still not taking the bait.

What sort of rate would be right for you , I’m in a similar position , just opened a Shawbrook 1 yr fixed but also waiting for higher ones…getting itchy feet now !

I’ve said before it’s cat and mouse, now we play chicken - who blinks first. What you shouldn’t do is think you are going to miss out. Remember Chase bank @ 1.50%  old news now (people piled in for the saving rate not the banking facility)

There is plenty of  Competition vying for your money so sit on your hands ready to make your move, ignore the noise and make your play when you are happy.

3 more BoE meetings this year, they don’t want to trash the economy, they want to look after home buyers, but most importantly they need to get inflation under control.

To answer your question, I have a 6 month bond coming to maturity very soon, also I have some  notice accounts ending around November. End of this year will be my trigger point. If interest rates rise futher in early 2023 then it's C'est la vie.

Patr100

Feels like until there is a strong inkling that inflation has definitely peaked  (as opposed to exceeding expectations) because that will a signal a reduction of the BoE crank up of interest rates, then that might be the time to fix  - but I remember dreaming about 3% a few months ago
and we are now approaching 4 -  

Thumbs_Up

I had my mind on a 1 year fix, but to be honest 3,4, or maybe 5 year fix I won’t rule out. I will need the monthly interest income.

t1redmonkey

Investec have matched the top 1 year fixed rate at 3.30%.