fixed rate savings bond?

[steveo3002]

looking at these on the moneysavingexpert site

getting on for 5% fixed if you lock away for a year , ive tried googling and not found my answer

are these all safe as houses with the 85k protection , no risk at all ?

[The Leaper]

Yes.

My wife has several of these, and fixed rate cash ISAs, all under £85,000, for this very reason. Can be a pain researching the issuing financial institution and whether or not its linked to others for the guarantee.

R.

[steveo3002]

bond not the same as an isa though?

just want to be sure i cant lose the money

[rossub]

You could always sacrifice a bit of interest and go for a ‘known’ name.

That’s what I’ve done in the past.

[steveo3002]

i most likely would lean towards a known name

but my question - are bonds 100% safe , zero risk ? i can see the savings account says so but not on bonds ?

[Countdown]

steveo3002 said:

i most likely would lean towards a known name

but my question - are bonds 100% safe , zero risk ? i can see the savings account says so but not on bonds ?

Yes if the provider is covered by the FSCS.

e.g. if Barclays are selling the bonds then they're covered.

[jfis89]

steveo3002 said:

i most likely would lean towards a known name

but my question - are bonds 100% safe , zero risk ? i can see the savings account says so but not on bonds ?

A fixed rate ‘bond’ is just a savings account with a different name (banks usually use the term to refer to anything that requires you to lock the money away for a period).

[PositronicRay]

Oh well you gotta jump sometime.

[Armitage.Shanks]

jfis89 said:

A fixed rate ‘bond’ is just a savings account with a different name (banks usually use the term to refer to anything that requires you to lock the money away for a period).

This. We've got several up to the £85k max in some Banks/Institutions I've never heard of but Martin Lewis's advice and promoting them as FSCS compliant is good enough for me.

A member posted this website the other week which is worth a look: https://savingschampion.co.uk/

[Mr Whippy]

The institution is selling you a bond they’ve issued?

Or an institution selling you someone else’s bond?


FSCS protection covers the failure of the institution only.


I know the bail in rules changed a lot post GFC, but it’s definitely worth doing DD on any product that isn’t ‘cash’ wrt fscs protection.

[gareth h]

I’m in the process of buying a few fixed rate bonds, but have decided to sit on my hands until the BOE declares their expected interest rate rise in early November as I suspect their will be some more attractive offers on the table.

[steveo3002]

gareth h said:

I’m in the process of buying a few fixed rate bonds, but have decided to sit on my hands until the BOE declares their expected interest rate rise in early November as I suspect their will be some more attractive offers on the table.

yeah same , just asking questions so im ready to roll

[The Leaper]

steveo3002 said:

gareth h said:

I’m in the process of buying a few fixed rate bonds, but have decided to sit on my hands until the BOE declares their expected interest rate rise in early November as I suspect their will be some more attractive offers on the table.

yeah same , just asking questions so im ready to roll

Recently I decided not to wait, so got 4.25% for 2 years with a fixed rate cash ISA. Now waiting to see what happens next week from BoE to then decide what may be my next move. Today, the government bond yields have gone down considerably to around 3.8%, so maybe it was good to move now rather than wait. We'll soon see.

R.

[Mr Whippy]

They’ll be double before this is all over.

Still way too much exuberance out there.

[Greenmantle]

On another note remember the 85K limit includes interest accrued to date. Therefore you need deduct that from your calculations.

[Caddyshack]

Remember that nobody has ever lost their deposit in a U.K. bank. Since the credit crunch the capital adequacy checks were brought in so it is probably a fairly unrealistic thing to consider losing the cash.