Who has a crystal ball? Fixed bond for one or two years?

applepad

I have my pension lump sum in an NS and I Income bond, It’s due to mature in the next few days, I took a smaller pension and a bigger lump sum, So I really do need the income from the savings bond.
Already going to be down quite a bit of money from Last year‘s interest rate to what they are offering now, Fixing for two years will reduce the income too. So I have to look at the bigger picture, Don’t really want to fix for more than two years as we may have a house move then and I need the money

Mark_d

If you really need extra income, why take a bigger lump sum/smaller annuity?  If you'll ultimately use money from your lump sum to fund a house purchase, then what will provide this extra income once you've bought the new house?

wmb194

applepad said:

I have my pension lump sum in an NS and I Income bond, It’s due to mature in the next few days, I took a smaller pension and a bigger lump sum, So I really do need the income from the savings bond.
Already going to be down quite a bit of money from Last year‘s interest rate to what they are offering now, Fixing for two years will reduce the income too. So I have to look at the bigger picture, Don’t really want to fix for more than two years as we may have a house move then and I need the money

It's expected that interest rates will fall and you see this reflected in the rates on offer. It doesn't have to be all or nothing though. Including instant access, you could have a mixture of terms and do things like chase the 6%+ regular savings accounts.

applepad

Mark_d said:

If you really need extra income, why take a bigger lump sum/smaller annuity?  If you'll ultimately use money from your lump sum to fund a house purchase, then what will provide this extra income once you've bought the new house?

Health not been good since Covid- 6 years till state pension, new house will be cheaper to run/heat/maintain, if I die within a few years of retirement, spouse will be better off