Interest rates going up

mars_2

This is a change

The Halifax have increased their fixed rate websaver rates

Rate from Feb 1 from feb 13th

6 months £500+ 2.75% 2.85%
9 months £500+ 2.60% 2.90%
1 year £500+ 2.65% 3.10%
2 years £500+ 2.25% 2.60%
3 years £500+ 2.60% 2.85%
4 years £500+ 2.80% 2.85%
5 years £500+ 3.00% 3.30%

nrsql

Not enough to attract me but for some reason I find it a bit worrying.

Overnight libor has gone below 1% on the expectation of more boe rate cuts to near 0%.

withnell

But it's expected that rates will recover in the future - those higher rates are on fixed term products.

nrsql

withnell wrote: »

But it's expected that rates will recover in the future - those higher rates are on fixed term products.

Within 6 months?

newsaver2008

That's encouraging:) Maybe (as someone on this Forum said I think) someone has seen the light and want to attract deposits?

MiserlyMartin

mars wrote: »

3 years £500+ 2.60% 2.85%
4 years £500+ 2.80% 2.85%
5 years £500+ 3.00% 3.30%

I suspect that in 3-5 years time those fixed rates will look awfully low and will be a poor deal.

metrobus

Regarding fixed term bonds 6 month is the way to go at the moment,

Very little downside,since your not going to get much more than
the best thats on offer now whilst BoE rate is 1%.

Just of the top of my head I know you can get over 3% with
Nationwide.

And if the rates reverse which they will once inflation starts to up
your money is not tied up to long .

luvpump

metrobus wrote: »

Regarding fixed term bonds 6 month is the way to go at the moment,

Very little downside,since your not going to get much more than
the best thats on offer now whilst BoE rate is 1%.

Just of the top of my head I know you can get over 3% with
Nationwide.

And if the rates reverse which they will once inflation starts to up
your money is not tied up to long .

Yeah i agree, though i wish i had fixed for at least a year last october when I took out my six month term with Halifax, everything is so uncertain at the moment i prefer to stay reasonably liquid

metrobus

Yes, I know what you mean, I have 3 1 year bonds coming out in April/May averaging around 6.8 %,would not mind an extra year or two on them.

sheslookinhot

MiserlyMartin wrote: »

I suspect that in 3-5 years time those fixed rates will look awfully low and will be a poor deal.

yes, but in 3-5 years the fixed rate period will be coming to an end.

metrobus

Why take 2.8% and have your money tied up for 4/5 years,when you can get over 3% for 6 months?

The BoE rate has hardly anywhere else to fall .

There will always be someone offering over 2.8% for short term(6 mth) bonds.