Money to Invest and Tie Up for 12 Months

Loobeylou

As the heading states, I have money which I can afford to tie in for 12 months before shifting to a competitive rate of interest with someone else. I already have a regular saver account which I pay into every month.

I have noticed Bradford & Bingley have a "1 Year Fixed Rate Bnd" at 7% gross. Is this the best around for a 12 months tie in?

Baldur

There are a few which offer better rates - see here.

dunstonh

Timescale is too short to invest. Stick to savings/cash based options.

KeithEssex_2

Loobeylou wrote: »

As the heading states, I have money which I can affort to tie in for 12 months before shifting to a competitive rate of interest with someone else. I already have a regular saver account which I pay into every month.

I have noticed Bradford & Bingley have a "1 Year Fixed Rate Bnd" at 7% gross. Is this the best around for a 12 months tie in?

Those paying over 7% are as follows:-

* FIRSTSAVE - Nigeria (7.10% AER)
* West Bromwich BS (7.05% AER)
* ICESAVE - Iceland (7.01% AER)
* Kaupthing Edge - Iceland (7.01% AER)
* Bradford & Bingley (7.00% AER)

Points To Note:-

1. ICESAVE is protected under the Passport scheme for the first part of any compensation repayment.
2. Kaupthing Edfe and FirstSave are fully covered under the FSCS scheme but some people do not feel confortable using them because of the country risk of their parent company.
3. Bradford & Bingley are having to stock up on their capital at present and are attracting bad publicity.

If you are a more cautious saver then you might prefer to receive a slightly lower interest rate with a better name :-

Personally I like the Chelsea Building Society (6.6% 1 year) , The Yorkshire Building Society (6.5% 1 year) and the Nationwide (6.6% 1 year).

genny

KeithEssex wrote: »

1. ICESAVE is protected under the Passport scheme for the first part of any compensation repayment.
2. Kaupthing Edfe and FirstSave are fully covered under the FSCS scheme but some people do not feel confortable using them because of the country risk of their parent company.

Why the differentiation between the risk with Kaupthing Edge and Icesave? KE offers excellent customer service (well covered on this forum) and is Icelandic based, as is Icesave, so why would you be more comfortable with one than another? FirstSave is a totally different ball game though.

Baldur

genny wrote: »

Why the differentiation between the risk with Kaupthing Edge and Icesave? KE offers excellent customer service (well covered on this forum) and is Icelandic based, as is Icesave, so why would you be more comfortable with one than another? FirstSave is a totally different ball game though.

As KeithEssex said, KE is fully covered up to £35,000 under the FSCS, whereas Icesave is only covered by the FSCS above the first €20,000, which is covered by the Icelandic compensation scheme.

See the chart here.