6% Fixed Rate for 3 years anywhere yet ??

R_._Tatac

I've been holding out for an account paying 6% fixed for 3 years with either annual or monthly interest.

I think this latest base rate rise may make this possible.

Does anyone know if Skipton BS , National Counties BS or Heritable Bank are likely to up their fixed rates to this level or are they unlikely to respond.

Surely someone must go for the nice round figure of 6% fixed to top the tables ??

Finally , what is the general feeling on here about fixing at 6% for 3 years if this becomes possible , I personally think it will be a very good bet but what do others think ??

frogman_2

I think 6% might be possible after the rise today...but I'd look for 1 year not 3.

Rather than the BSs you mention, look at Anglo Irish or Bank of Cyprus...or Ruffler if you feel comfortable with the operation. Of course, rates may rise again later this year - probably around May - so you may want to hang on till it tops out.

R_._Tatac

Thanks for the reply Frogman but why would you look for 1 year ? If rates "top out" as you put it later this year before heading down again surely it's best to lock into this decent rate of return for as long a possible ?

rory41444

R_._Tatac wrote:

I've been holding out for an account paying 6% fixed for 3 years with either annual or monthly interest.

I think this latest base rate rise may make this possible.

Does anyone know if Skipton BS , National Counties BS or Heritable Bank are likely to up their fixed rates to this level or are they unlikely to respond.

Surely someone must go for the nice round figure of 6% fixed to top the tables ??

Finally , what is the general feeling on here about fixing at 6% for 3 years if this becomes possible , I personally think it will be a very good bet but what do others think ??

HSBC are offering 6% as a special offer but for only 3 months - its a start.

ManAtHome

I was going to ask the same question RT - I'd be looking at 3 or 5 years over 6% (although possibly in euros rather than quids..).

The longer-term rates tend to be independent of BoE rates, mainly related to whether Japan will put their rates up.

R_._Tatac

rory41444 wrote:

HSBC are offering 6% as a special offer but for only 3 months - its a start.

Can't see anything about this on their website ?

frogman_2

RT, because at the moment 2-3Y rates are lower than 1Y...it's all about the money markets view of Interest Rates over the corresponding period.

Anglo-Irish Bank Rates

Hope that answers the query.

frogman_2

MaH, I'm not sure what you mean by,

The longer-term rates tend to be independent of BoE rates, mainly related to whether Japan will put their rates up.

Sterling is not pegged to the YEN, AFAIK and UK & Japanese interest rates are pretty much independent. Do you know any different?

Not trying to step on your post, just want to learn.

ManAtHome

Banks can borrow at low rates from Japanese banks. Main risk is how the pound and yen will move over the loan period, so they add a bit on to cover this, plus a bit more to make money, then lend it to UK consumers.

I understand there are (Bank of England) rules about how much banks can lend relative to deposits, so they still need to offer savings accounts. Pretty sure these rules have been relaxed over the last 10-15 years - hence the credit boom (funded by cheap dosh from the far east).

pauldb_2

Am I reading this page correctly?

http://www.icicibank.co.uk/savings_interestrates.html

ICICI now offer 6% for 1yr on £100,000+

tom188

pauldb wrote:

Am I reading this page correctly?

http://www.icicibank.co.uk/savings_interestrates.html

ICICI now offer 6% for 1yr on £100,000+

Yes but its moneymarket so absolutely no withdrawals. Although you can take a loan out against it.