Fixed Rate Savings

maypole

I want to open fixed rate savings but am worried that the interest rates will rise and I will lose out on a better rate. I am talking 3-5 years, anyone in the know have any idea how rates will go please?

redmalc

Thats the million dollar question that everyone is asking themself,in my opinion i think there may be a slight increase mid to late 2011 possibly 1.5% by December2011 then WHO HAS ANY IDEA after that ???

opinions4u

Fixed rate accounts usually reflect estimated changes in future interest rates.

But this is based on nothing more than educated guesses/forecasts.

Nobody predicted 0.5% BofE rates. Nobody really knows what the future holds. Perhaps fix half and keep some in a higher paying easy access account just in case (e.g. The AA).

maypole

Thank you.

I know it's a difficult question, but thanks for your input

Mickygg

If you are worried - looks at tracker savings rates that go up in line with any increase in base rate - Santander and Nationwide do these.

Depending on what you are saving - split between instant access, long term fixed and one that tracks the base rate, then you'll have all bases covered.

juicyjude

If only we had a crystal ball, we would all know what to do with our money then wouldnt we? Good advice though on this thread.

Linton

maypole wrote: »

I want to open fixed rate savings but am worried that the interest rates will rise and I will lose out on a better rate. I am talking 3-5 years, anyone in the know have any idea how rates will go please?

No-one knows, but to minimise the risk you could ladder. ie put say 1/3 in a 1yr account, 1/3 in a 2yr account and 1/3 in a 3yr account. Then when the 1yr account matures put the cash into another 3 yr account. In this way you are getting some of the flexibility of a 1yr account with the returns of a 3 yr account.

meunier

I found it interesting when they said on the BBC's MONEYBOX that, although the amount of savings in banks had raised in the last quarter, that these had recently stalled and the amount of people now drawing significant amounts from those savings to off-set debt was proving considerable. If (as has been suggested in the media) the pressue only continues to increase in the latter regard, I have a 'hunch' that interest rates may well have to rise if for no other reason than to buoy up the increased capital requirements for the banks as announced yesterday.

(Of course this is just a guess from a [blessedly] non-Financial Sector professional).

All best wishes with the tricks and gambles of all ... 'Shall we dance?'...

G_M

maypole wrote: »

I want to open fixed rate savings but am worried that the interest rates will rise and I will lose out on a better rate. I am talking 3-5 years, anyone in the know have any idea how rates will go please?

I want to buy some stock market shares but am worried that the stock market will fall and I will lose out. Anyone in the know have any idea how the markets will go please?

Rob_192

G_M wrote: »

I want to buy some stock market shares but am worried that the stock market will fall and I will lose out. Anyone in the know have any idea how the markets will go please?

:D Bless

kingmonkey

G_M wrote: »

I want to buy some stock market shares but am worried that the stock market will fall and I will lose out. Anyone in the know have any idea how the markets will go please?

Nobody knows I'm afraid. Don't believe anyone who thinks otherwise.