Moving instant access to several fixed rate bonds

Sunshine_and_Roses

Albermarle said:

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)

£169.97 up to now, £185.15 with another three years contributions.