Tag Archives: Savings

Should I Put my Savings in a Fixed Rate Bond?

There are lots of different choices for savers but a fixed rate bond may be one that you are considering. IT is a good idea to think about whether this might be a good option for you. It is therefore good to think about what this bond is and whether it will work for you.

What is a Fixed Rate Bond?

A fixed rate bond is a type of savings account where you can save you money at a fixed interest rate. This means that for the duration of the bond, the interest rate will remain the same. This term will vary between bonds and will be at least a year but could be usually anything up to five years. The term will be determined by the provider and will be set in a number of exact years. The bond will tend to start on a specific date and will mature on a specific date, so all holders will open their accounts on the same day and their bonds will mature on the same date.

What are its Advantages Over Other Savings Accounts?

  • A fixed rate bond often has a higher interest rate than some other types of savings accounts especially instant access accounts. They want to reward you for letting them have your money for a long time and so the rates will be more attractive.
  • You cannot draw the money out easily and sometimes not at all which means that you if you want to make sure that you will not be able to get hold of your money then this could be a good way to do it.

What are the Disadvantages Over Other Savings Accounts?

  • Although the interest rate can be high when you take out the bond, if you keep the money in it for five years, you could find that the interest rate goes up and there are more attractive accounts but you will not be able to use them. You could also find that you might even find better bonds, but you will not be able to transfer your money.
  • If you need the money, you may not be able to get it at all. There are some fixed rate bonds where you can withdraw money but you will forgo your bonus or some interested. There are some where no withdrawals are allowed at all. It could be a case of making sure that you check this out before you take out the bond so that you can be clear on what the rules are and decide what you think will work for you.  
  • You may find that there are limits on how much you can put in the bond. You may have a minimum as well as a maximum amount that you can put in the bond and this could restrict you.

Is it Right for me?

It is important to think about whether this type of savings account will work for you. Consider whether you will be happy tying your money up for this amount of time. Of course, you may just pick a one year bond and then it will not be that long compared to a five year bond. You may also be able to choose a bond which allows withdrawals which could be less of a risk. You should also think about whether you are willing to take a risk on the fact that you might get a better interest rate but you may not be able to move the money. You also need to think about how much money you have available to save and whether that is an appropriate amount of money to work with this fixed rate bond that you are interested in.

Ways to Make Money in Your Free Time

If you want to earn a bit more money, then there are lots of things that you can try. One way is to see if you can make some in your free time. Even if you do not have a lot of free time, there will still be some things that you can have a go at.

Sell Things you no Longer Need

You could spend some time having a sort out in your home so that you can see whether you have anything that you no longer need that you could sell. It is easy to sell things these days, particularly online and so you could easily make some money form it. You will fond that local social media groups and car boot sales apps will allow you to sell things quickly and easily and people may even come and collect them from you and pay you. It can be a great way to raise a lump sum of money but you will not be able to make a regular income from it as you will eventually run out of things that you can sell.

Do Some Surveys

There are some companies that will pay you to do surveys for them. These can raise a small amount of money and you are likely to be able to do them regularly. It will not make lots of money, as the rate of pay is very low but it can be a way to just add to your income and it can be a lot of fun as well. It will not be good if you need money fast though as you will often have to accumulate a significant sum of money before you can cash out.

Try a Free Lottery

There are quite a few free lottery sites online and they can be a lot of fun. You will have to check the website to see if you have won. This is because they are funded by advertising, so they want you to see the adverts. They will have different draws for different amounts, and you may want to look at some reviews to decide which of them to sign up to or perhaps you will want to try a lot out. They are very much better than the real lottery as you do not pay out anything and you have a better chance of winning. However, you will find that the jackpots are a lot smaller.

Do Some Freelance Jobs

You might be able to find some freelance jobs that you can do which will enable you to be able to make some extra money. These can be good because you can choose what you take on depending on the time that you have and how much you are prepared to do the work for. There are all sorts of things available to try out such as graphic design, programming and writing so it is worth having a look to see whether there is anything you would like to do.

Monetise Your Hobby

If you have a hobby that you enjoy then you could try raising some money by making money from it. It might be that you make things that you can sell and this will make it easy to get some money. However, if you do not make anything, you may still be able to make some money by making videos, a website or even writing books about your hobby. It will not necessarily bring in much money or bring in money quickly, but it will enable you to make money in a way that will hopefully be fun for you.