Interest rates in 12 month's time?

TDPIX

Hey all,
I recently opened a fixed rate (5.8%) account for 1 year with Halifax (to guarantee a good interest rate for a year)

I'm wondering whether, in your opinion, it'll be next to impossible to find a savings account in 12 month's time which pays anywhere near this amount of interest?

Obviously the rates would depend on the Libor and BoE rates, however with these being cut 1.5% (hence why I opened the 5.8% account) and probably going to be cut more, what do you think the market average (for savings accounts) will be in 12 month's time?

Just curious; I'm pretty sure I only want to keep my money in this account for 1 year (am a student and circumstances can change quickly), although if interest rates were to go waaay down then it may be worth investing maybe 50% of my savings in a 2 year fixed rate account?

Thanks :-)

RayWolfe

At this sort of time, if you can afford to lock money away, two even three year fixed rate savings may be a good idea.
As to what rates will be in a year ... who knows! But I have put some away for the above periods, so I guess I recon they will be lower. OTOH banks may need our money and continue to pay well over base.

ManAtHome

Yes, most of mine is in "post election bonds" just in case (will be a burger if The Bottler de-bottles). Big thing up in the air is whether countries with money will point it at inward investment instead of continuing to buy US and UK bonds - cheap money could become scarce over the next few years, so same reservations as Ray.