Interest rates could drop to 1% - what's the point of risking money in savings?

manhattan

I cant put mine into a fixed term account as it maybe needed for a house deposit at any time.

LesU

neil324 wrote: »

Rates are going one way thats for sure, maybe the cuts wont be passed on while libor is still high, well not to borrowers anyway. Ive tied 85% of my cash away in 2 year fixed term accounts.

One New Year's resolution I will keep, hopefully when I get my Icesave money back, will be - No fixed term savings. The Icesave account was the first time I had ever committed money long term (12 months), so when things started to look iffy in mid-summer, I was helpless.

At least go for the 'withdraw your money, but lose interest' type of account if you must go long-term. 2 years is a very long time these days.

neil324

LesU wrote: »

One New Year's resolution I will keep, hopefully when I get my Icesave money back, will be - No fixed term savings. The Icesave account was the first time I had ever committed money long term (12 months), so when things started to look iffy in mid-summer, I was helpless.

At least go for the 'withdraw your money, but lose interest' type of account if you must go long-term. 2 years is a very long time these days.

Understand what your saying, but as long as your below the 50k and away from any of the passport stuff. If anything the fixed term deposits with Icesave will come of the best as per the FSCS rules so if you do get caught short with a large amount in an easy access account or ISA you lose out.

paul5046

neil324 wrote: »

Rates are going one way thats for sure, maybe the cuts wont be passed on while libor is still high, well not to borrowers anyway. Ive tied 85% of my cash away in 2 year fixed term accounts.

I'm looking to do the same. Which 2 year accounts, if i may ask.

neil324

paul5046 wrote: »

I'm looking to do the same. Which 2 year accounts, if i may ask.

ICICI and Nationwide but before they cut their rates. Think a lot of the 2 year have been withdrawn or lowered with expectation of the coming rate cuts. Have a look here

http://www.moneyfacts.co.uk/savings/bestbuys/long-term-fixed-rate-bonds.aspx