Best Fixed Rate Savings

ss4

I want to get a new fixed rate account because my savings account pays 3.25% (variable rate). I heard that interest rates may go down again so I want a 1yr fixed rate account.

I have tried comparsion websites but they all seem to come up with small banks. I would like an account from one of the big banks (barclays, natwest, lloyds, alliance etc.)

What is the best rate available?

robnye

ive have just looked on behalf of my middle daughter...... icici/anglo irish /ipswich 1 year bonds 5.1/5/4.9 respectiviely

Rafter

ss4,

moneyfacts do a larger listing here:

http://www.moneyfacts.co.uk/money/savings/default.aspx?TabID=0

These are longer lists but at least will give you organisations 'too big to fail' if you are worried about small banks or building societies.

I think the daily mail/ thisismoney websites also include longer lists that exclude very small/risky players or accounts with nasty catches or terms.

Robnye,

Although covered by various guarantees and your funds are safe up to £50k, ICICI are quite a risky bank (based on their cost of credit insurance) based in southern india, anglo irish are in all sorts of trouble and being re-capitalised by the Irish government and Ipswich are a fairly tiny building society (Nationwide is 500 times bigger!)

R.

Nomad25

Took the words out of my mouth Rafter.

Also if you are taking a bond out, check the quoted interest level on the day you apply, as it may change from when you originally look at it. Fixed rates are only fixed once your application's in.

ss4

I checked on there and it seems like the best rate from a big bank is from nationwide at 3.85%. This doesn't seem much bigger than 3.25% i'm getting now, does anyone know of a better rate?

Hungerdunger

ss4 wrote: »

I checked on there and it seems like the best rate from a big bank is from nationwide at 3.85%. This doesn't seem much bigger than 3.25% i'm getting now, does anyone know of a better rate?

It may not seem much bigger now, but wait a couple of months and your variable rate savings will probably have dropped by a further per cent.

It's really down to you - play safe and go with one of the "big boys" at a reasonable rate or try one of the smaller ones and be prepared for the worst. Remember that Icesave did so well in recruiting savers because they were offering one of the top rates!

Finally, remember that your savings are guaranteed up to £50k per account, so if you've got more than that you could always try splitting it between some of the best rates.

Just found this Nationwide account offering 4.2%; can you afford to tie up some of your cash for two years?

Steve_xx

[quote=Hungerdunger;16986395
It's really down to you - play safe and go with one of the "big boys" at a reasonable rate or try one of the smaller ones and be prepared for the worst. Remember that Icesave did so well in recruiting savers because they were offering one of the top rates![/quote]

So the "big boys" are safe are they? How big is big? HBOS and RBS big enough? Both of them are in dire straits.

4leafclover_2

I took out a Clydesdale fixed rate bond before the rates dropped and now can't find much either and I'm happy to consider the smaller building societies - everything I was looking at is now 'sold out' or the rate has dropped. I'm now considering whether to put a small amount in Anglo-Irish at 5% or not, and am going to do some 1 year fixed rate regular savings accounts at over 5% before they disappear too.

savetilibleed

ss4 wrote: »

I checked on there and it seems like the best rate from a big bank is from nationwide at 3.85%. This doesn't seem much bigger than 3.25% i'm getting now, does anyone know of a better rate?

Although the Cheshire BS is a small one, it is now part of Nationwide. So Cheshire's Fixed 2 year bond is good and not risky (except if interest rates do an about turn in the foreseeable future :rolleyes:

4leafclover_2

Thanks, that's interesting - with the 2 year ones I was looking at the other month, the rate went down after a year and didn't go back up until after 3 or 4 years which I didn't want to commit to. Since I've now done a one year and and 18 month fixed rate, a 2 year at 4.75% is really worth considering.

MarkyMarkD

Believing that you are any safer by investing in Nationwide than any other UK bank or building society is pretty ridiculous. The compensation scheme is the same irrespective of which organisation you invest in. And every single UK bank or building society which has got into any sort of trouble in the last couple of years has had its savings business transferred elsewhere in an orderly fashion - or the whole organisation has been taken under government control (and that is only because they hadn't twigged the alternative option in time for Northern Rock).

I would consider ruling out overseas institutions, possibly, because the same argument doesn't hold quite as much water, but ruling out the Ipswich Building Society on security/safety grounds is stupid.

IMHO.