Moving instant access to several fixed rate bonds 27 November 2022 at 2:49PM in Savings & investments 11 replies 731 views

clareski

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

kaMelo

Yes, rather than an all or nothing approach doing what you suggest is a great way to spread your bets by putting smaller sums into multiple fixed savers at the best available rate at that time..

Albermarle

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital

Maybe a good idea to look at this from another angle. Should a cautious or sensible person keep large amounts of money is savings accounts, knowing that they will lose money ( in real terms).

It would actually be less risky in the long run to have a mixture of investments and savings, so that is what a cautious person should do. Investing via a pension can sometimes be the best way.

clareski

Albermarle said:

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital

Maybe a good idea to look at this from another angle. Should a cautious or sensible person keep large amounts of money is savings accounts, knowing that they will lose money ( in real terms).

It would actually be less risky in the long run to have a mixture of investments and savings, so that is what a cautious person should do. Investing via a pension can sometimes be the best way.

I have two decent(ish) DB pensions, one payable in 10 years time and the other at state retirement (currently 17 years time).  I currently work part time for a charity and have been paying into NOW pensions for three years.  Is this something worth looking into? If so is there a beginners/idiots guide that you could suggest for me to start?

RG2015

clareski said:

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

There isn't a single solution that would suit everyone. You need be be clear about your savings goals.

Do you have a plan for the money, a large future purchase or is it insurance for a rainy day? Do you have your pension sorted or are you already retired?

I am retired with a decent pension and I do exactly as you have suggested with my surplus cash. Currently I have fixed 1 year and regular savers maturing every month for the next 12 months. 

Albermarle

clareski said:

Albermarle said:

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital

Maybe a good idea to look at this from another angle. Should a cautious or sensible person keep large amounts of money is savings accounts, knowing that they will lose money ( in real terms).

It would actually be less risky in the long run to have a mixture of investments and savings, so that is what a cautious person should do. Investing via a pension can sometimes be the best way.

I have two decent(ish) DB pensions, one payable in 10 years time and the other at state retirement (currently 17 years time).  I currently work part time for a charity and have been paying into NOW pensions for three years.  Is this something worth looking into? If so is there a beginners/idiots guide that you could suggest for me to start?

Your NOW pension is an investment, with extra tax benefits, as with all pensions. Most pensions have a choice of investments ( typically between 5 and thousands) . Now is unusual as there is only one choice, although it changes its makeup as you approach retirement age. Have a good look at the NOW internet site for members as it is quite informative.
You could increase your current contributions, or make a lump sum payment to the NOW pension, but you are limited in how much you can add by your salary.
Outside a pension, it is better to invest within a Stocks and shares ISA, as this simplifies the administration and protects you from any tax issues. The issue of course is what to invest in within the ISA.
You could start some reading here.
Investing in stocks for beginners: how to get started - MSE (moneysavingexpert.com)
Stocks & shares ISAs: find the best platform - MSE (moneysavingexpert.com)
Pensions: Everything you need to know for retirement - MSE (moneysavingexpert.com)
How to invest in a stocks and shares Isa: The quick and easy guide | This is Money

clareski

RG2015 said:

clareski said:

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

There isn't a single solution that would suit everyone. You need be be clear about your savings goals.

Do you have a plan for the money, a large future purchase or is it insurance for a rainy day? Do you have your pension sorted or are you already retired?

I am retired with a decent pension and I do exactly as you have suggested with my surplus cash. Currently I have fixed 1 year and regular savers maturing every month for the next 12 months. 

It's really for security for the future.  DH took early retirement this year and I work part time.  We can manage on what we earn if we are careful, so this is to make sure we have enough stashed away if I take early retirement in maybe 5 years time.  Really need to look at pension options I think, it's new to me as previous ones were government DB, so unable to add.  

RG2015

clareski said:

RG2015 said:

clareski said:

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

There isn't a single solution that would suit everyone. You need be be clear about your savings goals.

Do you have a plan for the money, a large future purchase or is it insurance for a rainy day? Do you have your pension sorted or are you already retired?

I am retired with a decent pension and I do exactly as you have suggested with my surplus cash. Currently I have fixed 1 year and regular savers maturing every month for the next 12 months. 

It's really for security for the future.  DH took early retirement this year and I work part time.  We can manage on what we earn if we are careful, so this is to make sure we have enough stashed away if I take early retirement in maybe 5 years time.  Really need to look at pension options I think, it's new to me as previous ones were government DB, so unable to add.  

It does need some research to look at the returns. Pension contributions are free of income tax and have the benefit of being risk free. Have you looked at AVCs which can also be used as tax efficient savings?

Also keep up to date with your NI contributions which are easily viewed on your personal tax account online. I was am amazed to see it had my NI record for 47 years. More important though is having enough years to qualify for the full new state pension.

clareski

RG2015 said:

clareski said:

RG2015 said:

clareski said:

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

There isn't a single solution that would suit everyone. You need be be clear about your savings goals.

Do you have a plan for the money, a large future purchase or is it insurance for a rainy day? Do you have your pension sorted or are you already retired?

I am retired with a decent pension and I do exactly as you have suggested with my surplus cash. Currently I have fixed 1 year and regular savers maturing every month for the next 12 months. 

It's really for security for the future.  DH took early retirement this year and I work part time.  We can manage on what we earn if we are careful, so this is to make sure we have enough stashed away if I take early retirement in maybe 5 years time.  Really need to look at pension options I think, it's new to me as previous ones were government DB, so unable to add.  

It does need some research to look at the returns. Pension contributions are free of income tax and have the benefit of being risk free. Have you looked at AVCs which can also be used as tax efficient savings?

Also keep up to date with your NI contributions which are easily viewed on your personal tax account online. I was am amazed to see it had my NI record for 47 years. More important though is having enough years to qualify for the full new state pension.

34 years of full contributions with no gaps - does that sound right?

RG2015

clareski said:

RG2015 said:

clareski said:

RG2015 said:

clareski said:

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

There isn't a single solution that would suit everyone. You need be be clear about your savings goals.

Do you have a plan for the money, a large future purchase or is it insurance for a rainy day? Do you have your pension sorted or are you already retired?

I am retired with a decent pension and I do exactly as you have suggested with my surplus cash. Currently I have fixed 1 year and regular savers maturing every month for the next 12 months. 

It's really for security for the future.  DH took early retirement this year and I work part time.  We can manage on what we earn if we are careful, so this is to make sure we have enough stashed away if I take early retirement in maybe 5 years time.  Really need to look at pension options I think, it's new to me as previous ones were government DB, so unable to add.  

It does need some research to look at the returns. Pension contributions are free of income tax and have the benefit of being risk free. Have you looked at AVCs which can also be used as tax efficient savings?

Also keep up to date with your NI contributions which are easily viewed on your personal tax account online. I was am amazed to see it had my NI record for 47 years. More important though is having enough years to qualify for the full new state pension.

34 years of full contributions with no gaps - does that sound right?

The important thing is to see how many more years you need to contribute to qualify for the full SP of £185.15 (currently). This will all be on your HMRC PTA online.

Albermarle

clareski said:

RG2015 said:

clareski said:

RG2015 said:

clareski said:

I have opened a 1 year (4.35%) and a 2 year (4.5%) fixed rate savings bond with Atom, but rather than putting large amounts into these I am thinking of opening fixed rate savings every month or so.  So for example, if I have £50000 in Santander instant access at 2.75%, i would look at £10000 in each initally, then start a new 1 and 2 year fix every month or so so they would start maturing in a years time but i would still have money in the instant access if needed.

At the moment I have maximum in premium bonds, and any winnings go into current account, then transferred to Santander instant access at 2.75%.  

I have looked at investing but I am too cautious to take it further, even though I understand that savings interest is nowhere near inflation rate and I could be losing in the long term, but do not want to risk any capital.

Are multiple fixed bonds a sensible option? 

There isn't a single solution that would suit everyone. You need be be clear about your savings goals.

Do you have a plan for the money, a large future purchase or is it insurance for a rainy day? Do you have your pension sorted or are you already retired?

I am retired with a decent pension and I do exactly as you have suggested with my surplus cash. Currently I have fixed 1 year and regular savers maturing every month for the next 12 months. 

It's really for security for the future.  DH took early retirement this year and I work part time.  We can manage on what we earn if we are careful, so this is to make sure we have enough stashed away if I take early retirement in maybe 5 years time.  Really need to look at pension options I think, it's new to me as previous ones were government DB, so unable to add.  

It does need some research to look at the returns. Pension contributions are free of income tax and have the benefit of being risk free. Have you looked at AVCs which can also be used as tax efficient savings?

Also keep up to date with your NI contributions which are easily viewed on your personal tax account online. I was am amazed to see it had my NI record for 47 years. More important though is having enough years to qualify for the full new state pension.

34 years of full contributions with no gaps - does that sound right?

You can check here.
Check your State Pension forecast - GOV.UK (www.gov.uk)