Fix now or wait?

LeoC

I have some money I would like to put into a savings account.

I already put some money on Yorkshire's 2-year 4% deal.
I am also keeping some money on Santander's instant access at 3.1%.

Now my question is: should I also put some money on a 1-year account (some good deals at 3.5-3.6%) or wait a bit to see if better 1-year fixed deals show up?

What's your feelings for 1-year interest rate offers in the short term?

I don't think the Bank of England is raising its rates any time soon, but with LIBOR going up and banks needing funding, and competition, maybe better savings deals should be popping up soon?

Thanks

Leo

psychic_teabag

Right now you can get 4% from Monmouthshire BS on up to £12k. So not much point fixing for a year until you've filled one of those.

If you are a taxpayer, I assume you've already used your ISA allowance.

LeoC

Thanks.

Yes, I have used up all my ISA allowance. But I just sold two properties I had so I have considerably more to save, I'll have a look at Monmouthshire BS, thanks, but I still have more to save so still interested in people's opinions on upcoming changes to 1-year fixed rates.

I know that the more I wait for a good deal, the higher the new deal will have to be to compensate for the time that I could've been earning 3.6% and instead had been earning only 3.1%.

I know I missed KRBS's 3.66% deal for example...

opinions4u

A handful of fixed rates appear to disappeared in recent days to be replaced by lower rates.

Read in to that what you will. I suspect the markets believe that the Euro crisis will be resolved, liquidity issues are easing and banks can raise funds wholesale more easily, hence their higher share prices.

That means, at least for now, slightly lower savings rates.

Might all be different again in a week though!

Gromitt

LeoC wrote: »

I'll have a look at Monmouthshire BS, thanks, but I still have more to save

Wait until 1st April, then you deposit another 12K, so 24K in total.

sabretoothtigger

I don't think the Bank of England is raising its rates any time soon

Its not up to them ultimately. They'll raise rates in an instant when they have to.

Some say nothing can happen this year as its an election year in USA and they arent about to waste all that kudos of making free money to now screw up the illusion just when it counts the most by changing things this year

IronWolf

I think about 1-2 years ago the best savings rate I got was 2.8% gross, now its like 3.1%. So I doubt its worth waiting a few months, I'd just put it in now.

SallySunshine

If you can stretch a little further than a year, Shawbrooks have an 18 month one at 3.9%.

Their website was down over the weekend but it's back on now and still offering this deal.

https://www.shawbrook.co.uk/personal/save/fixed-term-product/18-month-fixed-rate-bond-–-issue-1

calypso_rhapsody

Monmouthshire and Shawcross, both mentioned already, are the obvious options at the moment - if you are a couple you can put £48k into the MBS product (4 x £12k - though half of that would have to be in April) and £170k into Shawcross (admittedly 18mth but almost a 2 year rate).

Personally i would not be betting on one year rates being above 3.6% for a while ....

TCA

Clydesdale/Yorkshire Banks have just reduced their fixed rate offerings, if you want to read anything into that:

1 to 5 YEAR FIXED TERM DEPOSITS reduced by up to 0.24%. 12 MONTH: 3.20% on maturity (3.15% monthly); 2 YEAR: 3.80% yearly (3.87% on maturity, 3.75% monthly); 3 YEAR: 4.10% yearly (4.27% on maturity, 4.03% monthly); 5 YEAR: 4.50% yearly (4.92% on maturity, 4.41% monthly) w.e.f. 6.2.12.

https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=212723

LeoC

Thanks for the heads up on Yorkshire Bank. I just locked in the Yorkshire Bank deal at 2-years / 4% last week, so if I had waited on that one, I would've lost.

So it looks like it's time to fix some more.

The 18-month deal from Shawbrook looks interesting but I already have a 2-year fixed...