1 Year Or More Fixed Rate Bonds?

WSB

I usually put my cash in 1 year fixed bonds.
Currently there's deals out there for up to 6.2% with slightly lower %s for 2 years and more.
I know it's crystal ball stuff but given the higher rates at the moment, I'm wondering whether this time round I should fix for more than the usual 1 year.
I know it's all prediction stuff but just interested to know people's opinions.
Thanks in advance.

vic_sf49

I went for a mix and match approach, to hedge my bets.... 

1 year fix (6.0)
2 year fixed ISA (5.9%)
3 year Fixed ISA (5.51%)
5 year fix paying out monthly (5.80 AER for comparison) 

Some funds sitting in Santander's 5.2% easy access, until later in the month, to see what the BoE will do on 23rd Sep.... then probably another fix, yet to be decided.

Some in Premium Bonds, which is my "emergency fund". 

WSB

vic_sf49 said:

I went for a mix and match approach, to hedge my bets.... 

1 year fix (6.0)
2 year fixed ISA (5.9%)
3 year Fixed ISA (5.51%)
5 year fix paying out monthly (5.80 AER for comparison) 

Some funds sitting in Santander's 5.2% easy access, until later in the month, to see what the BoE will do on 23rd Sep.... then probably another fix, yet to be decided.

Some in Premium Bonds, which is my "emergency fund". 

Wow, I like your approach. Very impressive. Think I might try something similar. Thanks

SVaz

I think it depends on your plans for the money.
We have a YBS rainy day account for holidays, you can withdraw twice a year, it pays 4.55%

I have an 12mth fix ISA with Nat west paying 5.75%

An about to mature Investec bond that will be put into NSI at 6.2%

Partner has a long running S+S ISA.
Those 3 will pay off our remaining mortgage when the 1% fix ends in 2026.

Then we have a First direct monthly saver at 7% and an easy access active savings/Allica account at 5.5% as an emergency fund, we’ll need to replace a few windows and the roof in the next 10 years.  

Everything else goes into our pensions, I’ll be retiring in around 5/6 years 

straightshooter1

Rates may well rise again this month after the next BOE interest rate meeting. I intended to hold off until then and( as I don't need access to my funds in the medium term) fix for 5 years. 

RedImp_2

straightshooter1 said:

Rates may well rise again this month after the next BOE interest rate meeting. I intended to hold off until then and( as I don't need access to my funds in the medium term) fix for 5 years. 

To be fair most fixes factor in expected future rises in interest rates (which explains why 2 year fixes are lower than 1 year say) so unless it’s unexpected it shouldn’t effect fixed rates really.