Fixed-rate deposit accounts are a 'con'.(Brief Article)

Financial Adviser, July, 2004

IFA Frank Cochran has called for fixed-rate deposit accounts to be avoided in a rising interest rate environment.

Mr Cochran, managing director of FSC Investment Services in Wolverhampton, West Midlands, said deposit accounts offered poor returns in view of the anticipated rate rises by the Bank of England.

Skipton Building Society last week launched a range of fixed-rate bonds, with a three-year product offering 6 per cent.

The group claimed it was the first to offer a rate at 6 per cent in recent years.

Mr Cochran said: "These firms are conning people into buying these products because the rate looks attractive but the probability of them looking so good in a few months time is small.

"The long-term view is that rates are...

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