Interest rates heading down? Get fixed rates now?

mikeymo_3

I have some cash to invest.

So far I've got £5000 in an HBOS Guarranteed Saver in order to get 12% on the HBOS REg saver that I opened in July (which will end up with the maximum in it, £6000)

Do people think that fixed term is a good bet? Either 'real' fixed term or products like regular savings that are effectively fixed. If savings rates are heading downwards is it a good idea to grab some of the fixed rate deals. I see HBOS also do a 7% 3 month product.

I've got a more than the FSCS limit, so I need to spread it around anyway. I don't mind tying some up, but will still want to keep some instant access.

Thanks.

MiserlyMartin

Although the big talk is all about interest rates heading down to 1%, I rather doubt it will go that low. I think I will fix half of my savings only, as i have another opinion that we may be heading for hyper inflation, in which case the BoE/Labour will have to raise rates possibly higher than now... and LIBOR may go higher. When you have LIBOR far detached from the base rate it shows something is wrong. I would say interest rates have ben set way too low for too long. (Its certainly not helping)

opinions4u

As the government improves bank liquidity, it is likely that we will see fixed and variable rate products fall.

Your post makes sense - I'd follow that 7% rate with government backed bank - they do 6 months too.

If you got the 6.25% fixed Guaranteed Saver, that's a good deal too to get the 12% Regular Saver!

wkt54

Nationwide dropped their interest rates on Fixed Bonds yesterday by 0.50%.

Stuart_W

The Co-Operative Bank have dropped the rate on their 2 year and 3 year fixed bond from 6.59% down to just 5.00% and even the 1 year bond has dropped to 6.50%.

Don't know if this helps to indicate the way we're going with this.

alex000

Dam was going to open a co-op 3 year bond, anyone else know any good 3 year rates?

Baldur

alex000 wrote: »

Dam was going to open a co-op 3 year bond, anyone else know any good 3 year rates?

According to Moneyfacts, next best is Julian Hodge Bank at 6.40% AER.

nzseries1

MiserlyMartin wrote: »

...as i have another opinion that we may be heading for hyper inflation...

Hyperinflation? Where the monthly inflation rate is 50%? Aren't you being a tad dramatic, or do you actually believe this?

agent_orange_2

Imagine that, 50% a month. Not too good for the savers but certainly would eat into debt. A good dose of inflation is good if you're in debt. Of course, that all depends if you can stay in work and your wages rise accordingly - a pretty big 'if'

wombat42_2

nzseries1 wrote: »

Hyperinflation? Where the monthly inflation rate is 50%? Aren't you being a tad dramatic, or do you actually believe this?

Hyperinflation will be a year or two down the line.

amistupid

Posted same link on a similar thread.

http://news.bbc.co.uk/1/hi/programmes/moneybox/7677797.stm

If his forecast is anywhere near surely high fixed rates now must be a decent bet.