Get 3.5pc on your savings if you fix for seven years - T
Figures from rate monitoring website SavingsChampion,coach outlet store online.co,ghd straighteners.uk show that the average rate across the top five easy-access accounts has fallen from 3.25pc a year ago to just 1.6pc today. The winds appear to be changing, though,coach outlet online, with last week. The latest launch by Skipton is part of this movement, but its seven-year term is unique in tying up customers' cash for so long. No other run-of-the-mill cash savings account has a term of more than five years. The Limited Edition 7 Year Fixed Rate Bond allows savers to invest anything from £500 to £10,ghd hair straighteners,000 in (£20,000 for joint accounts). VERDICTLocking your cash up for seven years at 3.5pc has hints of desperation. This is a highly unusual length of time to fix your savings rate and seems a strange option to take with rates currently languishing at record lows. Logically there should be only one way from here,http://www.coachoutletstoresh.webs.com, and that's up. The signs are that . After tax you'll barely beat inflation with this bond,coach outlet factory online. There is a significant risk that inflation could rise and if this happens the value of your nest egg will start to erode away. That is a danger in itself &ndash,coach outlet; so this is a far from "risk-free" option. But what are the alternatives if you really need the interest? The answer is few and far between. One option is to get a variable-rate account and wait for rates to get a boost,cheap ghd straighteners. The best currently pays 1.75pc before tax and is offered by National Savings & Investments. NS&I also offers a 2.25pc instant-access Isa,cheap ghd. Ask yourself this: do I think the Bank of England will boost Bank Rate at any stage within the next three to four years? If the answer is yes, you should almost certainly steer clear. Otherwise, the alternatives are moving a portion of your cash savings into different asset classes,coach outlet online, such as stock market shares, bought via funds. However, beware that you can lose capital this way if your investments turn sour. More details: Related-articles:
