Shawbrook 7 years fixed rate, would you go for that?

Altior

https://forums.moneysavingexpert.com/discussion/comment/81927744#Comment_81927744

That's my point. A 7 year fix is a bet on future interest rates and inflation. Of course those variables are somewhat correlated, but still a period of high inflation could wipe out the value of the fix. Any fix is a bet on those variables, but the longer the fix, the higher the pay off needs to be for taking that risk, really.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81927395#Comment_81927395

There was a similar debate in a recent thread.

They have introduced a new rule that says if the product remains unfunded 90 days after opening, they will close the account.

However if you download the Key Product information document.

7-year-fixed-rate-cash-isa-bond-21.pdf

You will see on the second page, the third point of the Terms and Conditions, the following ( which is the same as for older products)

Please note that the Bank reserves the right to withdraw this product at any time. If the product is withdrawn, you can continue to put more money into your account until the expiry of the fixed term.

Rheumatoid

https://forums.moneysavingexpert.com/discussion/comment/81927815#Comment_81927815

Not too big a risk if you only deposit 1k and see what happens with rates. Could pay dividends if we see significant falls. Might open and stick 1k in come April.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81928095#Comment_81928095

I was going to put a £1000 in now ( still have a bit of the £20K allowance left)

However I have already added to a Shawbrook ISA this tax year, and their T's and C's say this :

You can divide your allowance across different ISA types or with other providers if you want to spread your savings. You can open more than one cash ISA with Shawbrook, but your annual allowance cannot be split across multiple Shawbrook cash ISAs in the same tax year. 

If I add the £1000 after April 6th, then that will be the only Shawbrook ISA I can add new money to for the whole tax year.

35har1old

https://forums.moneysavingexpert.com/discussion/comment/81927395#Comment_81927395

First payment is required within 90 days but you can continue to add money during term

You may be able to open multiple ISA but you can only fund one with new money

clairec666

https://forums.moneysavingexpert.com/discussion/comment/81928077#Comment_81928077

Ah, I hadn't delved into the T&Cs. I thought they might have ended their generous "funding window" thing, given that interest rates are more likely to go down than up.

dales1

The money markets, recently, seem to have stopped thinking that interest rates are coming down.

see the green line

SH88SH88

https://forums.moneysavingexpert.com/discussion/6660163/shawbrook-7-years-fixed-rate-would-you-go-for-that

I'd invest it in shares, specifically an Investment Trust. Not quite sure which , but it'd be one of these four ... ATT, SMT, BIOG or IBT.

Reason ? . I think there's a good chance those four trusts would all grow at more than 4% p.a. average during the next 7 years.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81928976#Comment_81928976

Do you not think extremely concentrated technology funds are a bit risky for a medium term time frame?

OldScientist

https://forums.moneysavingexpert.com/discussion/comment/81928976#Comment_81928976

But there is no certainty that will be the case - to take an example, for ATT, the total return from 2000 to 2007 was -55% (falling from a price of 0.47 to 0.21 - no dividends with this trust). There is a chance (unquantifiable) that such poor performance will be equalled over the next 7 years. Whether this is an acceptable risk is dependent on what the money is for and how it fits in with an overall portfolio.