What can be done with a poor fixed bond?

peter021072

These are the T&C on a 4.05% 2 yr fixed ISA I've just taken out.

"If you need to take money out, you may withdraw the whole balance by closing your account. If you decide to close your account before it matures, we make an 'early access charge' of 180 days' interest. If there isn't enough earned interest to cover the charge, then we take it from the balance in the account"

Albermarle

peter021072 said:

These are the T&C on a 4.05% 2 yr fixed ISA I've just taken out.

"If you need to take money out, you may withdraw the whole balance by closing your account. If you decide to close your account before it matures, we make an 'early access charge' of 180 days' interest. If there isn't enough earned interest to cover the charge, then we take it from the balance in the account"

Typical T's & C's for a fixed term ISA.

Albermarle

shadewood_mole said:

Thanks for your replies. 

Much as expected I'll just have to wait.  I would have put the money into an ISA but had already used my allowance.  As you say it's a good job it's only a one year bond. 

In the current market I would be wary of putting anything in to a fixed account.  I don't think we've reached the peak just yet.

The fixed rates look ahead over the whole term of the fix, and short term predicted movements in interest rates do not necessarily affect long term fix rates. These seem to have peaked later around November last year, and are currently around 0.25% to 0.5% below what they were then. 

badger09

I took out a 1 year FRISA with Leeds BS in November 2021 @ 0.75%, a competitive rate at that time. It matured into an instant access ISA, which typically pay poor rates, @ 1.45%. 

Even the ‘experts’ sometimes get predictions wrong. We can only do what seems best at the time.