1 year fixed or longer if political parties change?

GoldenOldy

Hello there,

I more or less rely on savings interest to afford to live.
My current bunch of fixed term deposits are at an end, and i have found it uncomfortable the last few years .
i was thinking if buying a property to let, but have now ditched that idea after some consideration and wisdom from people on this site.
i have spoke to an ifa, well 2 actually, and they seem to be lurking around areas of investment with risk attached. 

This is just not me as I have anxiety problems already.
Therefore i wondered if any of you good people had any thoughts on whether it would be prudent to now set up deposits for 1 year, or maybe go longer say 2 or 3 years (even though the rates for all three are roughly the same)because the possible change in government may mean I struggle with the interest again.
Many Thanks

Dazed_and_C0nfused

i have spoke to an ifa, well 2 actually, and they seem to be lurking around areas of investment with risk attached.

Yet you're happy to guarantee the actual loss from inflation 🤔

Krakkkers

Inflation rates vary according to lifestyle.
My inflation rate is negative and has been for some time.

phillw

GoldenOldy said:

Therefore i wondered if any of you good people had any thoughts on whether it would be prudent to now set up deposits for 1 year, or maybe go longer say 2 or 3 years (even though the rates for all three are roughly the same)because the possible change in government may mean I struggle with the interest again.

Nobody can predict the future. If you are working then pension contributions are a good choice, as you get the tax back.

Otherwise, I'd go for a mix of terms that fit in with your cash flow needs.

I doubt a change in government would drive interest rates down. Base rate is more likely to settle at long term average (5%) or higher under Labour, just because of how they tend to run their policies. Especially without the stabilizing effect of the single market.

Band7

Krakkkers said:

Inflation rates vary according to lifestyle.
My inflation rate is negative and has been for some time.

Do you live in the dark and cold, on a farm growing all your own food, without machinery that needs diesel or petrol, and with steam-powered internet access?

Krakkkers

No but I do generate my own electricity and get paid for it and bargains and deals are everywhere and have driven down the cost of living for me over the last couple of years

kinger101

In what way would a change of government change things?

Are you worried whoever the next lot are might not do as stellar a job of managing our economy?

Krakkkers

And rising interest rates have increased my income dramatically

Krakkkers

Switched from BT slow adsl to Gigabit fibre and gone from £39 a month to £1 a month rising to £30 in a few months.
Everyone can have a negative inflation rate if they choose.

subjecttocontract

Krakkkers said:

Switched from BT slow adsl to Gigabit fibre and gone from £39 a month to £1 a month rising to £30 in a few months.
Everyone can have a negative inflation rate if they choose.

Well said. The headline inflation rate doesn't apply to everyone.
1. I have solar pv so my energy costs have benefitted. I get paid for exporting any excess.
2. I drive far fewer miles now than I did before I retired so diesel/petrol costs are less.
3. I converted my unwanted Avios into Nectar and have hardly spent anything on groceries for almost 4 months.
4. Interest rates have provided a 10 fold increase in savings income.
5. I dumped Virgin Media that was costing £90 a month for Talk Talk at £20.
Etc.

Band7

Krakkkers said:

Everyone can have a negative inflation rate if they choose.

If that was true, we would all have a negative inflation rate

And btw, your savings interest rates wouldn't have risen if we had negative inflation. Also, negative inflation - aka deflation - is highly undesirable, as any economist will tell you.