MSE news: Fixed savings rates continue to climb (West Brom accounts)

Former_MSE_Guy

This is the discussion thread for the following MSE news story:

"Fixed savings rates have risen further despite the Bank of England base rate being held today at 0.5% for the fifth consecutive month.

West Bromwich Building Society has this week launched one and two-year Ebonds that trump the previous best fixed rates in those categories ..."

Read the full story:
Fixed savings rates continue to climb

bristolleedsfan

And 5 year account paying 5.45 % :rotfl:

http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=489308


http://www.westbrom.co.uk/westbrom/savings

Steve_xx

I'd already started a thread on the West Bromwich offerings here:

http://forums.moneysavingexpert.com/showthread.html?t=1861987

savetilibleed

And this 5 year stepped bond from Northern Rock will be paying:

Year 1 - 4.25%
Year 2 - 4.50%
Year 3 - 5.00%
Year 4 - 5.50%
Year 5 - 6.00%

opinions4u

savetilibleed wrote: »

And this 5 year stepped bond from Northern Rock will be paying:

Year 1 - 4.25%
Year 2 - 4.50%
Year 3 - 5.00%
Year 4 - 5.50%
Year 5 - 6.00%

Very similar to the Halifax offering.

http://www.halifax.co.uk/savings/personalrates.asp#Hx_Stepped_Income_Reserve

Northern Rock lock you in to the first year rate for an extra couple of months though.

savetilibleed

opinions4u wrote: »

Northern Rock lock you in to the first year rate for an extra couple of months though.

Oh yes so they do. Swings and roundabouts, as NR give a higher rate the first year+.

ManAtHome

And you don't have to die to get your cash out in an emergency (6 months loss of interest)

The Halifax one isn't bad either, but I have enough with their much better fixed-rate wing (BM).

Steve_xx

savetilibleed wrote: »

And this 5 year stepped bond from Northern Rock will be paying:

Year 1 - 4.25%
Year 2 - 4.50%
Year 3 - 5.00%
Year 4 - 5.50%
Year 5 - 6.00%

You have to look at the average over the term, which in this case comes out at 5.05% I think.

wizk1

It's quite astonishing really, how the savings interest rates are going up in spite of such a low base rate. Then again, the same could be said for consumer lending too

kostigovs

Given the recent rises in savings interest rates are either of these attractive?

apt

I don't think either stepped bond is that attractive because of the five year period and the uncertainty over future interest rates and inflation.