Tradefair & Financials
There is currently 1 person viewing this thread.
Is it worth tying up capital for 3 to 5 years at fixed rate interest?
i.e 4.6% Cash Isa fixed for 5 years
or Fixed rate Bond 4.65% for 3 years
i.e 4.6% Cash Isa fixed for 5 years
or Fixed rate Bond 4.65% for 3 years
sort by:
Show
per page
Replies: 11
|
By:
couldnt think of anything worse
|
|
By:
An alternate form of tax-free saving* is National Savings Index-linked 3 year savings certificates.
Why ? They pay 1% + index-linking at RPI. January's RPI figure was 2.4%, so they are currently paying 1% + 2.4% = 3.4%. And with inflation set to rocket, they will preserve the vlaue of your cash. Your ISA paying 4.5% might not seem so attractive when inflation is 6% and your money is locked in. * free from ncome and capital gains tax |
|
By:
be careful with the ns&i as the figs. from what i can tell they use the rpi figure for two months before the date of investment so you wouldn't receive teh 2.4+1 for now.
"When calculating the index-linking on your Savings Certificates, we start with the RPI figure two months before the date of investment. " |
|
By:
good point, hadn't realised.
|
|
By:
Thank you Lobby Ludd may revise my thinking and go "Index Linked"
|
|
By:
'The Bank of England has switched 70% of its staff pension fund into index-linked gilts......a heavy hint of what to expect'.
(Daily Telegraph 'Money' section 23 Jan p12 |
|
By:
O.K. just invested online Index-linked saving with N.S.&I
|
|
By:
dont think rates will rise more than 1% this year if that.
you would of been better off saving in an easy access with a years bonus |
|
By:
G! Jockey 4 which is the best Easy Access saving with bonus account to invest in?
|
|
By:
Make the most of inflation busting now. It is inevitable that it will fall markedly later in the year!
|
|
By:
You can get 3.3% fixed for a year, best i've seen but i haven't looked that much :)
|