is it worth locking cash away?

Albermarle

eastmidsaver said:

hi thanks.   yes i was thinking the same thing,    i guess the main risk is if interest rates fall,  as they say variable easy access accounts are likely to drop soon,   but who really knows.
what i have done today,  after reading comments in this thread,   is locked money i am pretty sure i won't need away for 1 year.     the rest of my money is staying in an easy access account.
i have another fixed term due to end in a few months,  around the same time as my mortgage expires,   so i might use that to make an overpayment.
once again, thanks to everyone for their input.

Or you could lock away for 3 years @5.35% as in a couple of years time, easy access interest rates might only be 2 or 3 %. Then again they might not....

adindas

If you are pretty sure you will not need the money, you will not regret locking you money, for one year. It might be a good idea, depending on the interest you get.  But it is more flexible if it the combination of the two as you will never know what will happen to you in the future. Noone knows

masonic

Albermarle said:

eastmidsaver said:

hi thanks.   yes i was thinking the same thing,    i guess the main risk is if interest rates fall,  as they say variable easy access accounts are likely to drop soon,   but who really knows.
what i have done today,  after reading comments in this thread,   is locked money i am pretty sure i won't need away for 1 year.     the rest of my money is staying in an easy access account.
i have another fixed term due to end in a few months,  around the same time as my mortgage expires,   so i might use that to make an overpayment.
once again, thanks to everyone for their input.

Or you could lock away for 3 years @5.35% as in a couple of years time, easy access interest rates might only be 2 or 3 %. Then again they might not....

Which is what I opted for. It will probably be the last rung on a ladder of 5-6% fixes spanning the 3 years. Next one matures in April, and I don't expect I'll be tempted by what remains then. Maybe I'll be tempted by some low risk investments as the ladder runs down.