I'm in A2 year and looking to invest £3600 in a 5 year 4.50% fixed interest rate account.
This will leave me with £1000 to help for general uni living costs.
After speaking with my father, he seems to believe that inflation will rocket soon and that historically, interest rates are above 5%. I infer from this, the 5 year term is not such a good idea?
Thanks for any advice
Savings Account Watch
- Thread Starter
- 06-08-2009 19:03
- 06-08-2009 19:08
you infer correctly sheriff
- 06-08-2009 19:13
Although i am not qualified to give financial advice. I would say your Dad is correct. In all likelihood in order to reduce the burden of debt on the economy some of the debt will be inflated away.
- 06-08-2009 19:15
In my opinion, inflation is stable. If the MPC do their job properly it should stay that way, though the MPC are likely to stop its quantitative easing programme soon.
5 year might be a bit long... go for something along the lines of 3%.Last edited by jase951; 06-08-2009 at 19:19.