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savings into bonds

sassie Avatar
banned6y, 9m agoPosted 6 years, 9 months ago
the interst at mo is pretty appalling, but concerend things will get better if i lock into a 5yr bond, what do you guys reckon, do you think going for less years tie in is better, the best i have found is 4.75% on a 5 yr bond
sassie Avatar
banned6y, 9m agoPosted 6 years, 9 months ago
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#1
I wouldn't tie anything in for longer than 2 years at the moment, sassie. As you say, if interest rates go up (and that's the only way possible at the mo) you don't want to be tied into a low rate.

Halifax have something for 2 years at 4%. http://www.halifax.co.uk/savings/Highinterestaccounts.asp
#2
Shares are still at a low price,I would (and have) buy into shares, something "safe" like BP or Vodafone, where the dividend yield is still more than you would earn in interest, never mind the growth potential
#3
graaaham
Shares are still at a low price,I would (and have) buy into shares, something "safe" like BP or Vodafone, where the dividend yield is still more than you would earn in interest, never mind the growth potential


This is good advice, too.

I'm sure you know that shares can go up and down in value and are not risk-free.
banned#4
shibi din
I wouldn't tie anything in for longer than 2 years at the moment, sassie. As you say, if interest rates go up (and that's the only way possible at the mo) you don't want to be tied into a low rate.


yeah alongside my thinking, 3.90% for 2 yr, 4.40% for 3 years and the 4.75% for 5 years, suppose the 3 yrs is pretty good

im assuming if you close these accounts early you just lose any interest?
banned#5
graaaham
Shares are still at a low price,I would (and have) buy into shares, something "safe" like BP or Vodafone, where the dividend yield is still more than you would earn in interest, never mind the growth potential


thanks, but not interested in investing in shares :thumbsup:
1 Like #6
lloyds tsb do an "incentive" account-you can only have it for a year then it converts to an ordinary account sassie,but the advantage is that in a year things may be better,and you can withdraw the cash at any time,altho you only get the interest for the months the money was there. pays 3.04%.

I put some of the cash from my mothers estate in there just for now til summat better comes along.

Others have given good share advice too-not for me personally,cos I like to see my money in the bank or in bricks and mortar but Im sure there are some great shares available.
1 Like #7
sassie
yeah alongside my thinking, 3.90% for 2 yr, 4.40% for 3 years and the 4.75% for 5 years, suppose the 3 yrs is pretty good

im assuming if you close these accounts early you just lose any interest?


I would ring them up to check and double check about withdrawing money, or closing the accounts. Some of the penalties are quite harsh and some accounts they won't let you take the money before the end of the term unless you write them a letter stating why you want it and even then they would probably only do it in cases of extreme hardship! This is what I was told when looking at various accounts.
#8
can u just keep adding money into bonds over the course of the term?
banned#9
shibi din
I would ring them up to check and double check about withdrawing money, or closing the accounts. Some of the penalties are quite harsh and some accounts they won't let you take the money before the end of the term unless you write them a letter stating why you want it and even then they would probably only do it in cases of extreme hardship! This is what I was told when looking at various accounts.


to be honest would only consider closing the accounts because interest shot through the roof, not because it was needed, think i will go with the 3 yr, i cannot see anything changing dramatically in the next 2-3 yrs, but maybe 5 years is a long time and things could change dramatically in yrs 3,4,5
banned#10
numptyj
can u just keep adding money into bonds over the course of the term?


no not these ones, but you can have as many bonds as you want, although the limit i think is 3 mil :w00t:
#11
sassie
no not these ones, but you can have as many bonds as you want, although the limit i think is 3 mil :w00t:


hmm ok, I need to start sorting some savings accounts out, dont even know what the interest on my current account is, no doubt its dire lol.
banned#12
numptyj
hmm ok, I need to start sorting some savings accounts out, dont even know what the interest on my current account is, no doubt its dire lol.


its pretty poor on most accounts at mo, seems the only way to get anything is to lock it away for a wee while, and that still aint great
#13
numptyj
can u just keep adding money into bonds over the course of the term?


numptyj
hmm ok, I need to start sorting some savings accounts out, dont even know what the interest on my current account is, no doubt its dire lol.


Check on somewhere like here http://www.moneynet.co.uk/Banking-Saving . All depends if you want to save regularly or if you have a lump sum to put away.
As discussed above, be wary of tying anything in for too long. If you are able to save on a regular basis there are some half-decent rates being given.
#14
shibi din
Check on somewhere like here http://www.moneynet.co.uk/Banking-Saving . All depends if you want to save regularly or if you have a lump sum to put away.
As discussed above, be wary of tying anything in for too long. If you are able to save on a regular basis there are some half-decent rates being given.


cool, i'll have a gander later on, will probs look to put away a fixed amount that I dont mind leaving for a bit, and have a look at some regular savings.

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