MSE News: Northern Rock pulls five-year saver after email flood

gozomark

poppy10 wrote: »

Interest rates could easily hit 4% by next year, and there will be higher savings rates available.

well they could, but extremely unlikely given the fiscal tightening - more likely is rates 1-2%, and 4% fix will probably still look very good

StevieJ

gozomark wrote: »

well they could, but extremely unlikely given the fiscal tightening - more likely is rates 1-2%, and 4% fix will probably still look very good

I agree, with low wage settlements and the Vat increase dropping out my money will be on sub 2% inflation in 2012.

Gorgeous_George

MSE clearly made a difference. The offer was withdrawn far quicker than it would otherwise have been - making it unavailable for people who genuinely would like a 5 year deal at 4%.

Did NR anticipate the MSE effect - a kind of double bluff? They (NR) have attracted funds (as planned) very quickly and many savers will not leave in a year's time while others will need to forego the 6 months interest to get their money in a hurry.

My guess is that the same amount of money has been moved to NR as would have been without MSE's free advertising - just much quicker.

GG

TCA

poppy10 wrote: »

TBH you'd have to be crazy to invest in a long-term fix at the moment. Interest rates could easily hit 4% by next year, and there will be higher savings rates available.

I humbly disagree. Even if bank rates hit 4% next year, which I severely doubt, I don't think we'll see a proportionate increase in savers rates.