NS&i one and two year growth bond

FleetwoodPat

Hi my one year fixed term bond is ending soon and I have been offered 5.16% to re-invest for another year, this is a super rate at present. However, the 2 year is 4.6%  would I be better putting it away for 2 years at that rate or doing the year  and seeing what the offer is next year, I’m thinking the rates are dropping so quickly now that next year we could be back to hardly any interest rate? Any thoughts please - 

Dazed_and_C0nfused

FleetwoodPat said:

Hi my one year fixed term bond is ending soon and I have been offered 5.16% to re-invest for another year, this is a super rate at present. However, the 2 year is 4.6%  would I be better putting it away for 2 years at that rate or doing the year  and seeing what the offer is next year, I’m thinking the rates are dropping so quickly now that next year we could be back to hardly any interest rate? Any thoughts please - 

You could well be right.

But you'll only know that in a years time.  

There is no right or wrong answer really, I have a similar NS&I bond and have left it to renew at 5.15% for a year.  Others would go for 4.6%.  

mebu60

Personally I'm taking the 1 Year. If you're wanting to hedge your bets you could split 50/50 across 1 Year and 2 Years. 

FleetwoodPat

Dazed_and_C0nfused said:

FleetwoodPat said:

Hi my one year fixed term bond is ending soon and I have been offered 5.16% to re-invest for another year, this is a super rate at present. However, the 2 year is 4.6%  would I be better putting it away for 2 years at that rate or doing the year  and seeing what the offer is next year, I’m thinking the rates are dropping so quickly now that next year we could be back to hardly any interest rate? Any thoughts please - 

You could well be right.

But you'll only know that in a years time.  

There is no right or wrong answer really, I have a similar NS&I bond and have left it to renew at 5.15% for a year.  Others would go for 4.6%.  

That’s what mine is and should have read 5.15%, i have under  2 weeks to decide and it’s really giving me thought. Oh decisions! 🤦🏻‍♀️

IanManc

FleetwoodPat said:

Hi my one year fixed term bond is ending soon and I have been offered 5.16% to re-invest for another year, this is a super rate at present. However, the 2 year is 4.6%  would I be better putting it away for 2 years at that rate or doing the year  and seeing what the offer is next year, I’m thinking the rates are dropping so quickly now that next year we could be back to hardly any interest rate? Any thoughts please - 

In your situation I'd reinvest at 5.16% for another year; then I'd buy a double scoop ice cream from the Beach Kafe and walk up The Mount and eat the ice cream while sitting and enjoying the view of the sea and the Lake District fells.

But that's just me ......