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The Masked Tulip

Fixed Savings Or Instant Access

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I've completed given up trying to figure out what IRs should be doing. Inflation rates says that IRs should be going up but I get the feeling that political pressure will not only keep them down but that they will get lower. Of course, I could be completely wrong.

Can people give me their views on whether 12 month fixed rates now is preferable or whether keeping my STR fund in instant access is best?

Please - no topic hijacking, no gold, no oil, no commodities.

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I've completed given up trying to figure out what IRs should be doing. Inflation rates says that IRs should be going up but I get the feeling that political pressure will not only keep them down but that they will get lower. Of course, I could be completely wrong.

Can people give me their views on whether 12 month fixed rates now is preferable or whether keeping my STR fund in instant access is best?

Please - no topic hijacking, no gold, no oil, no commodities.

I've kept mine on instant access simply because I believe that we are moving into a volatile and unpredictable period. In these conditions I value flexibility over incremental interest.

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I've completed given up trying to figure out what IRs should be doing. Inflation rates says that IRs should be going up but I get the feeling that political pressure will not only keep them down but that they will get lower. Of course, I could be completely wrong.

Can people give me their views on whether 12 month fixed rates now is preferable or whether keeping my STR fund in instant access is best?

Please - no topic hijacking, no gold, no oil, no commodities.

Definitely instant access. I've just had mine in a twelve month fixed term. I should have got the lot out into euros when it was 1.45. Hindsight it a great thing :(

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My gut feeling has always been that instant access is preferable in such volatile times, and up until a few days ago I was convinced that whilst IRs might go down one more time that by the end of the Summer, they would be on an upward march again, but...

After the events of the last few days, and the US Fed about to lower US IRs by a whole 1 percent, I have begun to doubt myself big time and feel now that Brown will do whatever is needed to force the BOE to keep IRs down low... and perhaps take them down to US levels.

Interesting that you have all said instant access so far so perhaps my initial gut reaction is best.

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I cannot see interest rates rising as housing and the economy tanks.The BoE will do there best to keep the banks propped up so I expect that they will at the very least keep rates on hold.

Instant access accounts which by nature have a variable rate tend to drop their rate after a few months when they have enough people sucked in. I have experienced this a few times now and its a pain and costs interest moving money into new accounts every few months.Banks must make nicely out of doing this. I had some money in Sainsbury's which was at 6.25% a few months ago. Now its down to 5.75%

There will be some good fixed accounts coming up due to the credit drought so why not take advantage of them. Last week I took out a 18 month fix with The Skipton at 6.5% It was only on the market for a few days so keep your eyes peeled.

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Mix it about. Keep some liquid but be prepared to tie up some to get the best rates.

I've dribbled bits into good 1 year bonds as and when they arise. Some in 3year nsandi tax free bond at rpi+abit.

Most importantly, in these troubled times, don't have too much with any one institution.

This isn't advice, it's just what I've done.

Only regret so far is buying a funds ISA. But I'm prepared to let that sit their for a very long time (15+years).

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I've completed given up trying to figure out what IRs should be doing. Inflation rates says that IRs should be going up but I get the feeling that political pressure will not only keep them down but that they will get lower. Of course, I could be completely wrong.

Can people give me their views on whether 12 month fixed rates now is preferable or whether keeping my STR fund in instant access is best?

Please - no topic hijacking, no gold, no oil, no commodities.

Blow it all enjoying yourself. You are a long time dead.

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Definitely instant access. I've just had mine in a twelve month fixed term. I should have got the lot out into euros when it was 1.45. Hindsight it a great thing :(

Indeed, however hindsight investing is generally not very helpful. Anyway, what if there had been a Eurozone crisis and the Pound had strengthened to €2 instead? If you're wanting to buy in the UK then throwing your STR fund to the mercy of the forex markets is quite risky.

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I think if your plan is to buy a UK house in 12 - 24 months then keeping your STR fund in Sterling is less of a risk than speculating on the currency market. With the likes of Spain and Eire in big trouble the Euro might tank later this year in some kind of crisis anyhow.

It is just what to do with savings here in the UK now - fix for 12 months or keep instant access. It used to be pretty obvious where IRs were going 6 and 12 months ahead but now it seems the old rules no longer apply.

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I think if your plan is to buy a UK house in 12 - 24 months then keeping your STR fund in Sterling is less of a risk than speculating on the currency market. With the likes of Spain and Eire in big trouble the Euro might tank later this year in some kind of crisis anyhow.

It is just what to do with savings here in the UK now - fix for 12 months or keep instant access. It used to be pretty obvious where IRs were going 6 and 12 months ahead but now it seems the old rules no longer apply.

Mix it up then, do a bit of everything.

Fix some of it, put some in NSandI inflation linked bonds (you can take the money tax free after a year), have some in instant access.

A good rule of investment is always have 3 months money in an instantly available account.

Northern Rock is probably a good bet at the moment for everything, although the rate is not fab, it is better than having your money wiped out.

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Mix it up then, do a bit of everything.

Fix some of it, put some in NSandI inflation linked bonds (you can take the money tax free after a year), have some in instant access.

On their site the minimum investment term is 3 years. Not sure how they work either - you get an IR rate plus the RPI rate on top of that so if the IR is 4% and the RPI is 2% you get 6% rate tax free?

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I went for 40% instant access at 5.75%, 60% fixed rate @6.5% halifax 6 month bond, not too long a period to worry about interest rate changes. Halifax seems pretty safe, if they go down, it's mad max time.

There were several bugs [not gold] on the Halifax website when opening the bonds but I did it anyway. You can set up 5 web saver accounts so that in an emergency, just pay the early closure penalty on one or more of them.

VMR.

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On their site the minimum investment term is 3 years. Not sure how they work either - you get an IR rate plus the RPI rate on top of that so if the IR is 4% and the RPI is 2% you get 6% rate tax free?

The term is 3 years, but you can access it tax free after 12 months I believe.

That is how it works, there are 1 or 2 issues a year and it is currently 1.5% over RPI, so 5.6 tax free, which I work out to be 7% for a BRT and over 9 if you are a higher rate taxpayer.

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i have split mine half fixed 12month bond and half instant access(e account) thats just enought risk for me in these risky times.....masked i think you are like me ...now you have got a big lot of money you now worry more about it than when i did not have any in the pot....ps my house money is in the e account though not 12 month bond

Edited by geoffk

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i have split mine half fixed 12month bond and half instant access(e account) thats just enought risk for me in these risky times.....masked i think you are like me ...now you have got a big lot of money you now worry more about it than when i did not have any in the pot....ps my house money is in the e account though not 12 month bond

Yep, spot on geoff. Anyhow, decided this week and next to move 50% of it into 12 month bonds and then sleep easier.

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For those worrying about 'tying up their money' for a year, I find it quite useful.

With about 40% of my funds unaccessible until early spring 2009, it means I can't justify buying a house in the meantime. And quite frankly, it's going to be around 3 years from now that we get to see the bottom from our position in the glass-bottomed boat of HPC.co.uk.

As someone else pointed out earlier in this thread. If we're going to armegeddon, then wtf with any investment strategy.

And if a bank does go completely 'base over apex' it's probably going to be just as easy/difficult getting your instant access funds out as your fixed bond funds.

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All good points redwing.

I suppose I also keep thinking that I will be able to buy later on this year when, in truth, around my way the EAs seem to be in denial still let alone the house owners who are selling.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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