What would you do - fixed rate account - 6 or 9 months?

Nebulous2

dosh37 said:

Unfortunately Amazon don't sell crystal balls. If they did, we would all be rich.

Oh they do, I have one that I was given as a present....... 

MerryNine K9 Crystal Ball with stand for Photography crystal sphere Lens Photo Ball(80mm/3.14" with 40mm Big Stand) : Amazon.co.uk: Electronics & Photo

Back on topic - 9 months for me, as I'd want to maximise interest and could afford to wait the extra 3 months for the money. 

Aged

howryoo said:

Was thinking of 6 months, as initially had same thoughts as @Middle_of_the_Road did - in that funds can be accessed earlier or reinvested with options at the time.

My thinking is that interest rates in 6 months time are more likely to be less than current rates, therefore I'd go for the 9 month fix (assuming that I wasn't desperate to get the capital back).

nick1234

Aged said:

howryoo said:

Was thinking of 6 months, as initially had same thoughts as @Middle_of_the_Road did - in that funds can be accessed earlier or reinvested with options at the time.

My thinking is that interest rates in 6 months time are more likely to be less than current rates, therefore I'd go for the 9 month fix (assuming that I wasn't desperate to get the capital back).

It appears to be certain rates will rise on 11th May as inflation is still sky high and they are predicting 1/2 more 0.25bps rises this year.  

I have the same dilemma and holding out till 11th May as better offers will be available 

refluxer

howryoo said:

If you had 30 - 40k which you can put into a fixed account for the short term, would you go for 6 months at 4.15% or 9 months at 4.25% / 4.30%

If you can't decide and both look like viable options (and either would fit your savings goals), then one option would be to open one of each and split the money between the two.

Middle_of_the_Road

Aged said:

howryoo said:

Was thinking of 6 months, as initially had same thoughts as @Middle_of_the_Road did - in that funds can be accessed earlier or reinvested with options at the time.

My thinking is that interest rates in 6 months time are more likely to be less than current rates, therefore I'd go for the 9 month fix (assuming that I wasn't desperate to get the capital back).

This is opposite to the way I was thinking. With inflation still in double digits and further base rate rises widely predicted,

I think rates could be on par, or maybe higher than current rates in six months time. As it is I'm holding off fixing further sums until I feel the base rate has peaked.

I opened both a 1 year and 2 year bond in January, at then decent rates, which are now looking not so good, at around 0.4% below the current best offerings.

I understand everyone's situation is different, and waiting for possible higher rates is not always the best approach, only time will tell.

Thumbs_Up

howryoo said:

If you had 30 - 40k which you can put into a fixed account for the short term, would you go for 6 months at 4.15% or 9 months at 4.25% / 4.30%

 

Can’t you stretch it to 12 month’s? Time does fly by.

You - 40k @ 4.3% @ 9 months  = £1,287

Me - 40k @ 4.73%@ 12 months = £1,892

Edit: Just saw it. " otherwise I'd contemplate a 1 year account".

howryoo

nick1234 said:

Aged said:

howryoo said:

Was thinking of 6 months, as initially had same thoughts as @Middle_of_the_Road did - in that funds can be accessed earlier or reinvested with options at the time.

My thinking is that interest rates in 6 months time are more likely to be less than current rates, therefore I'd go for the 9 month fix (assuming that I wasn't desperate to get the capital back).

It appears to be certain rates will rise on 11th May as inflation is still sky high and they are predicting 1/2 more 0.25bps rises this year.  

I have the same dilemma and holding out till 11th May as better offers will be available 

I suppose I could have held out for another month to see what rates looked like.

howryoo

refluxer said:

howryoo said:

If you had 30 - 40k which you can put into a fixed account for the short term, would you go for 6 months at 4.15% or 9 months at 4.25% / 4.30%

If you can't decide and both look like viable options (and either would fit your savings goals), then one option would be to open one of each and split the money between the two.

This did cross my mind, but at a later stage

howryoo

Thumbs_Up said:

howryoo said:

If you had 30 - 40k which you can put into a fixed account for the short term, would you go for 6 months at 4.15% or 9 months at 4.25% / 4.30%

 

Can’t you stretch it to 12 month’s? Time does fly by.

You - 40k @ 4.3% @ 9 months  = £1,287

Me - 40k @ 4.73%@ 12 months = £1,892

Edit: Just saw it. " otherwise I'd contemplate a 1 year account".

Just wanting to max the earning potential of ISA funds on a flexible account, hence .....

I'd go beyond the tax year end if I committed to a 1 year fix (but does seem enticing at 4.70% - 4.74%).