Choice between Fixed account/Flexi saver account

D

drsania

Registered User
Messages
13
Hi

I have €20000 to invest. I am considering options like Fixed savings in Halifax @5.6 % and FlexiSaver in Halifax @5.15%. What do you reckon in what proportion should I save in these? Is it worth putting money in fixed accnt for a year or I am better off putting it in flexisaver? or shouldI distribute it equally.

Regards
Sania
 
At the moment many experts are advising, if you don't need the money over the next year, go for the fixed option because interest rates expected to drop over the next few months.
 
Yeah, based on mos forecasts it is better to fix now.

You can do better than the Halifax fixed rate - Investec are offering 6.5% fixed for one year.
 
But is it safe to put your money with some non-irish guaranteed bank' for a year?

BR//Sania
 
Never heard of Investec though.. even First active is offering Money market deposit.. at 6.25%. What does money market mean? Do they mean they wll invest that in shares? What if they go in losses? Many unanswered questions..
 
drsania said:
But is it safe to put your money with some non-irish guaranteed bank' for a year?

BR//Sania
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50,000 GBP is guaranteed by the UK treasury. As you are looking to deposit 20,000 EUR - you are more than covered by the UK Govt.
 
But can I put all I have straight in one account or should I diversify them . as few in fixed and few in savings.. keeping first active and investec out of options.. so that I am not risking everything together.
 
drsania said:
But can I put all I have straight in one account or should I diversify them . as few in fixed and few in savings.. keeping first active and investec out of options.. so that I am not risking everything together.
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The UK Govt. is guarantying your deposit. How much more security do you want ? There is no need to diversify.
 
As I see it, you are not risking anything. You are fully guaranteed for the amount you are saving and will be safe. Get the best rate, which is Investec.
 
Actually I have never heard of Investec, never saw its ad. So bit sceptical to invest my money with such player especially during hard times.
 
drsania said:
Actually I have never heard of Investec, never saw its ad. So bit sceptical to invest my money with such player especially during hard times.
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Its ad? It saw in The Irish Times, The Sunday Business Post & Tribune.
 
Two choices really: Investec at 6.5% for 1 year or First Active at 6.25% for 6 months, both are fixed.....personally I went for the 6 month option with First Active a few weeks ago, it means I do not have the money tied up for 1 yr & perhaps there may be better interest rates out there by then, I hope
 

Investec offer 1 month, 3 month, 6 months, 9 months & 12 months fixed.

Their 6 month fix rate is 6.4% - A better rate than what First Active offer for the same product.
 
fungus said:
Investec offer 1 month, 3 month, 6 months, 9 months & 12 months fixed.

Their 6 month fix rate is 6.4% - A better rate than what First Active offer for the same product.
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Yes its true....unfortunately I just set up the First Active account close to 1 month ago....anyway I prefer to call into the branch too if there are any problems etc....I don't see too many investec banks around at present

I will check out what they offer on their 1 month rate....perhaps its a good rate.
 
fungus said:
Investec offer 1 month, 3 month, 6 months, 9 months & 12 months fixed.

Their 6 month fix rate is 6.4% - A better rate than what First Active offer for the same product.
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Just remember that Investec bank UK cover guarantee your savings up to £50,000 which is approx. & heading towards €50,000.....just a thought for those wealthy AAM posters out there....not me by the way
 
The rate offered by Investec is temting compared to what is on offer by the rest of the banks. Interest is accrued daily on their account. Would the accrued interest be covered by the British financial services compensation scheme?
 
Investec's 6 month fix rate is 6.4% - the AER on this is 6.5% just like the annual account. Also you can withdraw up to 20% of the original deposit on a one-off basis, handy if you are near the max guaranteed value and the value of sterling drops, as PJ points out above.
 
alpine said:
The rate offered by Investec is temting compared to what is on offer by the rest of the banks. Interest is accrued daily on their account. Would the accrued interest be covered by the British financial services compensation scheme?
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Yes, if the total is under 50,000 GBP.

At the end of the day I don't think any consumer will ever loose a penny in a EU bank.
 
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