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Savers Fight Back

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Close Brothers strikes gold

Close Brothers has laid down the challenge to the other savings providers, offering a market-leading rate of 4.75pc on its three-year Premium Gold Bond, a rate 0.40pc higher than its nearest competitor for the same term.

Savers looking to commit for a slightly shorter term are also being offered 4.50pc on the two-year Premium Gold Bond.

Up to £10m can be invested in the bonds, which are operated by telephone, post or fax. No further additions or earlier access are permitted during the term, so savers need to ensure they won’t need the funds before committing.

Gail Johnson, senior marketing manager at Close Brothers said: “The appeal for competitive fixed rates from secure UK financial institutions like Close Brothers remains high.

“The popularity of our previous Premium Gold offerings demonstrates that savers are still looking to fix their cash deposits at market-leading rates to secure their income for the next few years.â€

Am guessing this "bond" isn't protected by the Deposit Protection Scheme, so why would I lend my money at 4.5% (a meagre 2.7% after-tax for a higher-rate taxpayer) to some tinpot little "bank" that I know nothing about? No thanks, think I'll keep my money in my NS&I account earning next to nothing, deflation will help it realise some value eventually...

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4.50% for 2 years? I think that by the end of 2010 IRs will be higher than that. IRs are going to go up sooner and faster than many people realise.

Is that because you expect the effects of the QE printing to filter though, or because the banks will start lending again? The quantitative easing programme so far is only a couple of percent of broad money so that won't make much difference, to prices.

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Is that because you expect the effects of the QE printing to filter though, or because the banks will start lending again? The quantitative easing programme so far is only a couple of percent of broad money so that won't make much difference, to prices.

Not it isn't, they are trying to maintain double digit broad money supply growth.

ChartA_20080722071555.jpg

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I'm very wary of fixed rate bonds that lock you in for 2-3 years, especially with the level of instability I think we are set to experience. A variable rate that's 2%+ over base rate is good enough for me at the mo'.

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4.50% for 2 years? I think that by the end of 2010 IRs will be higher than that. IRs are going to go up sooner and faster than many people realise.

Of course you're right but many of these adverts are aimed at people who can't see that far ahead. I certainly wouldn't tie up any of my money for more than six months at the moment for exactly this reason.

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4.50% for 2 years? I think that by the end of 2010 IRs will be higher than that. IRs are going to go up sooner and faster than many people realise.

Agreed with the above, would not want to tie up money for that long in one account at the moment.

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