The Top Fixed Interest Savings Discussion Area

Middle_of_the_Road

Pompeydave1967 said:

Just fixed up a chunk of £££ with Atom 5 year @ 4.4% , it’s a gamble but considering current climate reckon it’s worth it. Any thoughts ?

Could well pay off, but not sure I'd want to fix for 5 years, a lot can happen during now and then.

I doubt the base rate will be below 3% over that period, but it could be well above that figure.

Pompeydave1967

Yeah it is a gamble , 3 years prob a good move as well but slightly lower rate. Unfortunately all my 2-5 year 5-6% are maturing this year and it makes depressing reading at the rates currently available. 

Patr100

Pompeydave1967 said:

Just fixed up a chunk of £££ with Atom 5 year @ 4.4% , it’s a gamble but considering current climate reckon it’s worth it. Any thoughts ?

If you know the regular annual income it provides and can live with that in context with other expected income for the next five years, it does of course give certainty and if rates are currently expected to stabilise around 3/4 % you wont lose out too much but anything can  happen.

clairec666

Pompeydave1967 said:

Just fixed up a chunk of £££ with Atom 5 year @ 4.4% , it’s a gamble but considering current climate reckon it’s worth it. Any thoughts ?

No idea what will happen to interest rates over that time, but if you're fixing for 5 years you should check whether there's the option for annual interest instead of getting it all at the end of the 5 years, to reduce the chance of getting taxed on it (if applicable to you).

InvesterJones

Pompeydave1967 said:

Just fixed up a chunk of £££ with Atom 5 year @ 4.4% , it’s a gamble but considering current climate reckon it’s worth it. Any thoughts ?

Depending on your tax situation, I'd go with a gilt instead - 5ish years returns the equivalent of 4.93% if basic rate payer, 6.44% if higher. And you can always sell before maturity if really needed.

DRS1

I just had a look at the Skipton website (having seen mention of their Member Bonus Saver) and see they now have a 7 year Fixed Rate Bond (paying 4%).  7 years!!!  Wow.

Middle_of_the_Road

DRS1 said:

I just had a look at the Skipton website (having seen mention of their Member Bonus Saver) and see they now have a 7 year Fixed Rate Bond (paying 4%).  7 years!!!  Wow.

Bit of a gamble. Hopefully not 7 years of bad luck..

InvesterJones

DRS1 said:

I just had a look at the Skipton website (having seen mention of their Member Bonus Saver) and see they now have a 7 year Fixed Rate Bond (paying 4%).  7 years!!!  Wow.

For comparison, a 7yr gilt (UK treasury bond) currently yields 4.26%, or there are relatively tax efficient 6.5yr at 4.24% and 8yr at 4.44%. If 7yrs blows your mind, you can get gilts and fix income for as long as 48yrs (4.64%, if interested)... 

DRS1

Middle_of_the_Road said:

DRS1 said:

I just had a look at the Skipton website (having seen mention of their Member Bonus Saver) and see they now have a 7 year Fixed Rate Bond (paying 4%).  7 years!!!  Wow.

Bit of a gamble. Hopefully not 7 years of bad luck..

Are you sure you are not really Mirror_on_the_Wall?

Hopefully in the next 7 years rates will have started back up again.

DRS1

InvesterJones said:

DRS1 said:

I just had a look at the Skipton website (having seen mention of their Member Bonus Saver) and see they now have a 7 year Fixed Rate Bond (paying 4%).  7 years!!!  Wow.

For comparison, a 7yr gilt (UK treasury bond) currently yields 4.26%, or there are relatively tax efficient 6.5yr at 4.24% and 8yr at 4.44%. If 7yrs blows your mind, you can get gilts and fix income for as long as 48yrs (4.64%, if interested)... 

Yes I will have to look at them.  I have one normal gilt maturing in a few days time so the prices are sure to have gone up before I have that cash to splash.  I don't think I will go for the 48 year one.  I bought an ILG maturing in 2039 last year and am beginning to think that is a bit far out in the future.