Are interest rates on the way down?

StevieJ

powerRIP wrote: »

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

In your dreams, Browney is at the rudder now.

Milarky

Interest rate have to fall - to give relief to homebuyers stuck on variable rates after their fixed rate ended, to shore up margins for the banks, and finally (why didn't I see this earlier!) to cut the cost of government borrowing now that that's gone through the roof.

More vested interests in rate cuts than rate rises I'm afraid. All we can do is continue to shop around and make it a bit more difficult for the bugg3rs

paul5046

Any other good fixed rate offers, preferably for 1 year.

wkt54

Would it be better now to invest in a 2 year fixed rate bond to a one year?

Any experts out there?

genny

jamieslucky7 wrote: »

Why would you consider it to be a brave move?

Seeing how many people have had money locked away in Icesave fixed accounts, unable to withdraw before the problems occured, the chance of that happening to another bank can never be ruled out, so at the moment I'm sticking to instant access, at least if there is a problem it can be moved out instantly.

Just what I think though!!

mjmal51

genny wrote: »

Seeing how many people have had money locked away in Icesave fixed accounts, unable to withdraw before the problems occured, the chance of that happening to another bank can never be ruled out, so at the moment I'm sticking to instant access, at least if there is a problem it can be moved out instantly.

Just what I think though!!

Had my money locked away in a one year Icesave bond, due to mature in a few weeks time. A year ago the world was a different place and I felt secure. Iceland rumblings started in earnest earlier this year and all I could do was hope that things would stay calm until the bond matured and then withdraw the lot. I am sure there were many in the same position and we were beaten to the punch. So after these events I will be very shy of locking money away ever again.

paul5046

mjmal51 wrote: »

Had my money locked away in a one year Icesave bond, due to mature in a few weeks time. A year ago the world was a different place and I felt secure. Iceland rumblings started in earnest earlier this year and all I could do was hope that things would stay calm until the bond matured and then withdraw the lot. I am sure there were many in the same position and we were beaten to the punch. So after these events I will be very shy of locking money away ever again.

Personally i stayed away from Isave. It always looked dodgy. Putting your money in a foreign country, whose culture you dont know, for a few extra quid when there are reputable banks in the UK. I trusted my instincts and it paid off. Now its telling me interest rates will come down and to lock into fixed rate. The last few weeks have shown Gordon Brown will do whatever it takes to secure the banks in the UK so i'm not worried.

As to the question earlier, one year fixed rate interest rates are more attractive than 2 years. I'm going for the shorter term.