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Close or Retain Regular Saver Bond
ForumUser7
Forumite Posts: 1,971
Forumite
Context: I have a 4% fixed rate Regular Saver Bond that lasts 3 years, with £150 max monthly deposit and penalty free closure but no part withdrawals. I have ~£500 in it, but as the rate is no longer competitive I was considering closing it. Having thought more about it, I was left unsure what to do - rates may fall again next year, and 4% may be competitive again, and not available if rates are falling. Any ideas please? Thanks!
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N.B. (Amended from Forum Rules): You must investigate, and check several times, before you make any decisions or take any action based on any information you glean from any of my content, as nothing I post is advice, rather it is personal opinion and is solely for discussion purposes. I research before my posts, and I never intend to share anything that is misleading, misinforming, or out of date, but don't rely on everything you read. Some of the information changes quickly, is my own opinion or may be incorrect. Verify anything you read before acting on it to protect yourself because you are responsible for any action you consequently make... DYOR, YMMV etc.
N.B. (Amended from Forum Rules): You must investigate, and check several times, before you make any decisions or take any action based on any information you glean from any of my content, as nothing I post is advice, rather it is personal opinion and is solely for discussion purposes. I research before my posts, and I never intend to share anything that is misleading, misinforming, or out of date, but don't rely on everything you read. Some of the information changes quickly, is my own opinion or may be incorrect. Verify anything you read before acting on it to protect yourself because you are responsible for any action you consequently make... DYOR, YMMV etc.
Close or Retain Regular Saver Bond 23 votes
Close it penalty free - free up the cash
73%
17 votes
Retain it - might be handy in the future
17%
4 votes
Rates may fall or rise - no one knows what may happen across the next 3 years
8%
2 votes
1
Comments
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Close it penalty free - free up the cashI have the Principality RSB Issue 31 at 4% and will close it today. True it's only for a year rather than your three year bond, but I work on the basis that you can't really be sure what might happen more than a year out.
1 -
Close it penalty free - free up the cashYou'd really be better off closing it. 4% is not good at all in the current market, and I feel we will have rates above 4% for a good couple of years at least so I don't see any real benefit in retaining it (I closed all my RS's paying 5% or less earlier this month).
Lots of savings based alternatives which would result in you earning more interest, whether that's putting the money to a higher paying RS, a notice account, an easy access account, or a fixed rate bond (plenty out there with a £1 minimum deposit).2 -
Retain it - might be handy in the futureIt's not going to make a huge difference one way or another.
£500 at 4% is £20 pa interest
£500 at 4.2% is £21 pa interest (best instant access rate currently)Remember the saying: if it looks too good to be true it almost certainly is.3 -
Close it penalty free - free up the cashI closed all but 2 regular savers, FD 7% and Skipton at 7.5%.Most of my money is in 5 or 7 year fixed.Emergencey money in Chip for instant access.I fund the regular savers from monthly interest so Im not loosing out.3
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Close it penalty free - free up the cashIf the alternative was to commit for the full term, then you could fix at a considerably better rate.
1
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