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12 Jul 23 17:19
Date Joined: 29 Aug 02
| Topic/replies: 58,346 | Blogger: Cider's blog
Is anyone else playing this currently?

Quite difficult to judge when the peak will be. I feel like it can't be far away, but I've felt that for a while!

Then we have savings tax to be concerned with. So cash ISAs are very much in play.

So where are we going?

I've gone for some 5 year bonds recently, for slightly lesser rate than shorter length bonds. As I feel this could be a limited opportunity.

Also the Virgin 3 Year Fixed Rate Cash E‑ISA @5.5% (for tax shielding). This ISA does also offer early access in an emergency (with a penalty).
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Report Cider July 12, 2023 5:22 PM BST
Excellent time (imo) to initiate a bond ladder.

Report ----you-have-to-laugh--- July 12, 2023 5:29 PM BST
We have taken out 5 year bonds.

Can't be sure, but seems a good balance to include them.
Report Cider July 12, 2023 5:36 PM BST
I feel like it's the right time personally, but got to be careful with the potential tax liability.

It will come down to politics vs economics. Most likely outcome I believe is that the BoE will cave in and reduce rates as soon as they think they can get away with it.

IT's are worth looking at too. Inherent capital risk but they are available yielding 5-7% and will see capital growth if rates fall. And can also be shielded in a S&S ISA.

But cash is appealing at circa 6% due to the guaranteed investment.
Report Cider July 12, 2023 5:42 PM BST
Report Cider August 3, 2023 1:36 PM BST
Could get reasonably interesting now with base rate being nudged up as expected, and inflation on the downward curve. Could we possibly get a flip, and savings will provide growth in real terms ?
Report peckerdunne August 3, 2023 1:40 PM BST
I'm getting over 10% on the s&p 500.
Report Cider August 3, 2023 1:49 PM BST
This is supplementing equity investments. People should have a lump of cash outside of volatile assets.
Report peckerdunne August 3, 2023 1:51 PM BST
Like the S&P, not very volatile for many years.

Up 60% in 5 years.
Report Cider August 3, 2023 2:06 PM BST
I'm talking about the next 5 years, not the last. No point in comparing cash to equities when base rates were on the floor. This is where strategies need to adapt to the changing environment.
Report peckerdunne August 3, 2023 2:11 PM BST
I'm just having a laugh with you Cider Wink

I am in the 500 though.
Report Cider August 30, 2023 3:29 PM BST
NS&I offers highest ever interest rate for one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds

New Issues of one-year fixed rate Guaranteed Growth Bonds and Guaranteed Income Bonds are on sale from today at 6.20% gross/AER and 6.03% gross/6.20% AER respectively
Report peckerdunne August 30, 2023 5:35 PM BST
It's a very short term approach.

Long term through history you will make more in ordinary mid caps or above, or in the S&P, you will also be losing purchasing power over time.
Report Cider August 30, 2023 6:06 PM BST
It's a must in my view to have a cash holding, what proportion of their wealth is up to the individual. A cash bond ladder strategy is hard to argue with.

From my own personal perspective (not the reason for this thread), I have a fixed rate on my mortgage until late 2028, which the current best savings rate smashes. So inflation is not particularly relevant there. My aim is to have a cash pot that could settle the mortgage at the end of the term. I'll review my options then. I doubt I will pay it all off, but I would like that as an option.
Report Cider August 30, 2023 6:10 PM BST
You'll know this but for any reader, you want to be able to get your hands on cash that covers at least 3 months bills at any given time. The Virgin Money cash ISA (3 yr bond) was great for that as they allow access any time (for a modest penalty).
Report peckerdunne August 30, 2023 6:17 PM BST
Yes, I get that,it is so. Access to a percentage of cash is required.

Good luck with the mortgage, you are getting there in sure.
Report Cider August 30, 2023 6:24 PM BST
Ta, it's always a juggling/balancing act. Before this realignment of interest rates I was concentrating on pensions to get the tax back. But locking in that rate when I saw it coming means that I effectively have over 7 years of deflation of my capital liability. So I've realigned my own strategy accordingly. I'm still putting plenty in pensions and taking advantage of SalSac, but this new situation of normalised interest rates has changed the game somewhat.
Report ----you-have-to-laugh--- September 6, 2023 5:00 PM BST
NS&I launches 6.2% one-year fixes
NS&I, formerly National Savings, has launched a massive best-buy fix, beating every other fix on the market -

Government buying cash?
Report Cider September 10, 2023 8:59 AM BST
Santander Easy Access Saver Limited Edition 5.2% (variable) for 12 months


Just a week left max to the advertised closing date.
Report Cider September 12, 2023 9:04 PM BST

Santander's top 5.2% easy-access savings deal ends TONIGHT
Santander's bumper 5.2% easy-access account is being pulled from tonight
Savers can still get this account if they apply before 11.59 this evening
Report layingisthewayforward September 12, 2023 10:55 PM BST
Ive got money in the the new Santander easy access account and a chip easy access account. Also feel like the peak is nigh so will be looking to fix in bonds for as long as possible.
Report Cider September 22, 2023 11:19 AM BST
Surprising the market (but not I), BoE presses hold on the Bank's rate. Not sure 6+ will be around for too much longer, over any time span.
Report lfc1971 September 22, 2023 7:38 PM BST
Cider knows what he is talking about .. not going to check
Report Cider November 11, 2023 2:24 PM GMT
Everything on the market now sub 6%
Report Cider December 24, 2023 10:19 AM GMT
Hopefully you all filled you boots, as expected interest rates are declining, and the elevated rates won't be back for a long time.
Report Cider March 26, 2024 8:16 PM GMT
Loophole for anyone who didn't know, you can open a Santander Edge current account and then an Edge savings account, and fund the savings account with 4k, paying 7% interest. The  information when setting the current account up talks about funding the account with 500 pcm, having 2 active DDs and there is a £3pcm account fee. But if you don't fund the account or set up the DDs, then you don't pay the fee. It pays a cashback on bills anyway, so you might want to set up the DDs and regular funding anyway. Might be a good time to get hold of that 7% account though. IR is variable and the top up to 7% is a 12mnth bonus, more than likely the 7%ers will be left and a new issue at a lower rate (if they want to lower rates).
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