The Top Easy Access Savings Discussion Area

pecunianonolet

Let's make hay while the sun still shines. 

Many of my regular supermarket products I buy just went up in price once again last week so inflation issues are to stay with us not going away any time soon

Nick_C

pecunianonolet said:

Let's make hay while the sun still shines. 

Many of my regular supermarket products I buy just went up in price once again last week so inflation issues are to stay with us not going away any time soon

Nobody is making hay with money in a savings account with a rate of interest that is 3% below inflation.  It's all about minimising losses.

patpalloon

Anyone think savings rates may have peaked? Worth going for a fix now?

Sg28

patpalloon said:

Anyone think savings rates may have peaked? Worth going for a fix now?

I am, but who knows!? 

PixelPound

pecunianonolet said:

Let's make hay while the sun still shines. 

Many of my regular supermarket products I buy just went up in price once again last week so inflation issues are to stay with us not going away any time soon

Each time we've had problem inflation, it has taken over a year to get under control. We'll have decent rates for the rest of 2023 at a minimum. 

refluxer

patpalloon said:

Anyone think savings rates may have peaked? Worth going for a fix now?

Coincidentally, I was just reading this...

https://www.telegraph.co.uk/business/2023/07/25/ftse-100-markets-live-news-wheat-prices-russia-ukraine-port/

Interest rates to rise three more times this year, economists predict - latest updates

The Bank of England will raise interest rates three more times this year as inflation remains high, economists predict.

Borrowing will hit 5.75pc by the end of 2023, according to a Reuters poll, putting it at its costliest level since 2007.

Nearly 70pc of economists expect the Bank of England to raise interest rates by a quarter of a percentage point to 5.25pc at the next Monetary Policy Committee meeting on August 3.

Most participants in the wider survey predicted a quarter point rise in September, with a median peak rate forecast of 5.75pc.

pecunianonolet

Nick_C said:

pecunianonolet said:

Let's make hay while the sun still shines. 

Many of my regular supermarket products I buy just went up in price once again last week so inflation issues are to stay with us not going away any time soon

Nobody is making hay with money in a savings account with a rate of interest that is 3% below inflation.  It's all about minimising losses.

I know that very well. An old piece of paper, it says certificate at the top, tells me that I am officially allowed to call myself an Economist, even if that piece of paper is quite a few years old and I work in a very different sector but some basics I think I still know from the time at Uni. I would think I know that concept of inflation too. 

My claim was not only in relation to interest rates, which as you quite rightly pointed out still mean losses in real terms and all we can do is damage control. It also means that very decent jobs are still on offer and employees still have a lot of negotiating power when it comes to salaries, benefits, etc. improving income streams. A 103% debt of GDP also means juicy tax rises to come, alongside the ones we have already seen e.g. fiscal drag, CGT and dividend allowance reductions just to name a few. 

Also, with 6% or higher reg savers and around 6% on fixes and ISA's locking in longer terms could get you to some sort of break even in the future. Having no savings or not enough income to put enough aside to benefit on those rates is the problem. A 10% reg saver would be nice but if I can only put £250 ish aside won't make you and I rich (er) and very many don't have even that left at the end to put somewhere. Last but not least, inflation is also a very personal thing depending on individual circumstances and lifestyle. 

Let me remind you, I get 2.3% interest on a Euro easy access account in the Euro zone with an ECB rate of 4%. My rate is a 6 months promotional rate. That's 1.7% below ECB rate vs a ca 0.5% difference between BOE rate and easy access rate. 

Debating how and where we park £xxxk to what rates, terms, and filling up annual ISA allowances is a very comfortable problem to have and very many can only dream about this. 

So let's make hay and stay positive while rates are as they are as this won't last for decades as the near 0% rate we had for many, many years.

simonsmithsays

refluxer said:

patpalloon said:

Anyone think savings rates may have peaked? Worth going for a fix now?

Coincidentally, I was just reading this...

https://www.telegraph.co.uk/business/2023/07/25/ftse-100-markets-live-news-wheat-prices-russia-ukraine-port/

Interest rates to rise three more times this year, economists predict - latest updates

The Bank of England will raise interest rates three more times this year as inflation remains high, economists predict.

Borrowing will hit 5.75pc by the end of 2023, according to a Reuters poll, putting it at its costliest level since 2007.

Nearly 70pc of economists expect the Bank of England to raise interest rates by a quarter of a percentage point to 5.25pc at the next Monetary Policy Committee meeting on August 3.

Most participants in the wider survey predicted a quarter point rise in September, with a median peak rate forecast of 5.75pc.

I'd love to trust economists but they seem to get almost everything wrong!

pecunianonolet

simonsmithsays said:

refluxer said:

patpalloon said:

Anyone think savings rates may have peaked? Worth going for a fix now?

Coincidentally, I was just reading this...

https://www.telegraph.co.uk/business/2023/07/25/ftse-100-markets-live-news-wheat-prices-russia-ukraine-port/

Interest rates to rise three more times this year, economists predict - latest updates

The Bank of England will raise interest rates three more times this year as inflation remains high, economists predict.

Borrowing will hit 5.75pc by the end of 2023, according to a Reuters poll, putting it at its costliest level since 2007.

Nearly 70pc of economists expect the Bank of England to raise interest rates by a quarter of a percentage point to 5.25pc at the next Monetary Policy Committee meeting on August 3.

Most participants in the wider survey predicted a quarter point rise in September, with a median peak rate forecast of 5.75pc.

I'd love to trust economists but they seem to get almost everything wrong!

I'd love if more people in society would actually understand what economists say

TiVo_Lad

refluxer said:

patpalloon said:

Anyone think savings rates may have peaked? Worth going for a fix now?

Coincidentally, I was just reading this...

https://www.telegraph.co.uk/business/2023/07/25/ftse-100-markets-live-news-wheat-prices-russia-ukraine-port/

Interest rates to rise three more times this year, economists predict - latest updates

The Bank of England will raise interest rates three more times this year as inflation remains high, economists predict.

Borrowing will hit 5.75pc by the end of 2023, according to a Reuters poll, putting it at its costliest level since 2007.

Nearly 70pc of economists expect the Bank of England to raise interest rates by a quarter of a percentage point to 5.25pc at the next Monetary Policy Committee meeting on August 3.

Most participants in the wider survey predicted a quarter point rise in September, with a median peak rate forecast of 5.75pc.

Presumably amongst the 30pc is the Chief Economist of HSBC who have today cut their 2 and 5 yr mortgage rates.