When to invest

derek007

I have 2 fixed rate savers with which are due to mature within a week. They were locked in for a year which is what the current instruction to the company is i.e. they will be locked in for another year if I say nothing. I want to re-invest with a company with a better return and have read your page on Banking & Savings which have a number of options I will definitely consider. With the current financial climate and soaring inflation, I was thinking of waiting, perhaps a month or so to see if the interest rates increase ?

dharm999

How much money?  When do you need access to it?  Are you happy to take a risk by investing it, and potentially losing money, maybe even a lot of it?

Albermarle

The title of the thread would indicate that you are looking to invest the money ( in stocks and shares for example)
However your post indicates that you are actually looking for alternative savings accounts.
Can you clarify please? 

derek007

Kent Reliance seem to do a good rate of 2.61% fixed rate saver, locked in for 1 year. As I have said the Banking & Savings page quote a few other similar examples that I would be interested in. My query really has to do with rates of return and how they are likely to change over the coming months.

It seems we are going through a period of financial change (in favour of savers) and as these things tend to be cyclic, how likely are the increases in rates due to continue ?

 

ColdIron

derek007 said:

how likely are the increases in rates due to continue ?

It's almost certain that we haven't reached the high water mark yet. But how long to wait? Perhaps split it between 2 or more accounts staggered over the next few months, or however long you are prepared to wait

derek007

I intend to split between 2 accounts.

The first account I can lock away for one year and I am tempted by Kent Reliance, fixed rate account of 2.61%. However DF Capital offer 2% for a Notice savings account i.e. 180 days notice is required to withdraw the funds. I might be saver investing at 2% for 6 months with DF Capital and then reviewing in the hope that interest rates have increased.

ColdIron

Just to look at it with another (simple) perspective, you will forgo 0.61% for 6 months with the notice account. You'll need to get 3.22% for the other 6 months to break even with the Kent Reliance account

derek007

Absolutely, which is only 0.61% increase - I am thinking the way things are, this is achievable over the next 6 months ?

I wonder how much the rates have increased this last 6 months.