Are interest rates on the way down?

paul5046

Is it time to go for fixed rate savings before they go any lower?

iltisman

It is but I am not brave enough to commit to a fixed term longer than 3 days until things get something like normal.

genny

I'd agree, I'd say interest rates are going to be forced down rapidly over the next few months, but commiting to a long term fixed rate in the current client is a brave move!

jamieslucky7

genny wrote: »

I'd agree, I'd say interest rates are going to be forced down rapidly over the next few months, but commiting to a long term fixed rate in the current client is a brave move!

Why would you consider it to be a brave move?

paul5046

jamieslucky7 wrote: »

Why would you consider it to be a brave move?

Yes, why. 50k guaranteed by a high street bank.

Personally if they want to free up lending, the best way is to lower the price of money.

paul5046

Halifax fixed rate websaver is 6.7% over 9 months, no withdrawl. Any better offers.
(UK only,and must have a high street branch)

wkt54

Would it be better now to go for a 2 year fixed rate bond, rather than 1?

This time next year interest rates may have gone down further.

StevieJ

paul5046 wrote: »

Is it time to go for fixed rate savings before they go any lower?

Without doubt.

1694

I would bet my balls to a barn dance interest rates will come down. There won't be a cataclismic crash either.

Interest rates will go down to ease everything, infact the money the govt borrowed will be handed out very cheaply to the banks, and they will share it about cheaply.

Things will pick up but so will taxes to try and cover the interest on the government loans.

The ticking time bomb of the high interest loans the govt took out and lent on cheaply will explode in our childrens faces forcing the same scenario again in 30-50 years.

Mean while banks are !!!!ing themselfs that nations are being taxed to pay them instead of for public services.

Reaper

I fancy the Egg 6.3% - it's fixed for a year BUT it's instant access so you can grab the money if things look rocky.

These days I think I need disclaimers:
* I'm not authorised to make recommendations
* This is just an opinion
* Egg are owned by Citibank
* It's your decision if you decide to save. Don't go blaming me if it doesn't work out.
* etc

1694

powerRIP wrote: »

Banks are desperate for our money. They might come down a little but they have to remain very competitive. IMO.

Banks have plenty of money, and every day that drags on they have more as people repay their debts, often at variable rates which are then higher than expected and you end up handing over part of your savings aswell as what you planned.

If you fail to repay, your posessions are repod and flogged cheap. The bank then has cash which it can use for it's fractional reserve and multiply it by nine to lend and collect interest on that. High interest rates are good for banks to cash in as they lend more than they borrow. Once the market is exhausted and no one has anything left to give, bingo rates come down and everyone is encouraged to borrow and spend.

Banks make their money from borrowers, not from borrowing.