The Top Easy Access Savings Discussion Area

happybagger

I'm not so sure. This months inflation figures are announced on the first day of the 2 day BoE moc meeting. The numbers will be ringing in their earholes. And although fuel prices have moderated, helped by stronger stirling, energy hasn't, and neither will it before next summer. By this time there will be very limited help from UK gov to reduce it unless you're on benefits so it will continue to feed into inflation.

And remember the inflation figure compares to where it was over a year ago, which is when prices started to rocket. Until that period drops out of the lagging12 month stat, then the figure will remain high.

I also think that as the gap between instant access and fixed rate has narrowed, fixes will go above 5% before the end of January.

Just my view and others have differing opinions of course.

Band7

FindingBBob said:

Zerforax said:

Saving rates haven't really climbed as I (and others here) had hoped/expected. At this point, my saving rate % and mortgage % is about the same so I think I might just pay down more on the mortgage.

I don't think we will see anymore increases in savings rates for while-  with 5 year mortgage rates coming down it would suggest that banks are seeing lower increases from BoE  - suspect BoE will only increase by 0.25 later this month and no savings provider will pass that on before new year and hope that we forget about it come January.. so yeah pay your mortgage :-) 

There might not be any increases in the easy access, unlimited balance accounts but we have seen some increases for Regular Savers in the last week or two, like the FD 7%, HSBC 5% and Monmouthshire 5.5%. Just alone between these 3 you can deposit £750 a month, £9,000 a year. There's a number of other Regular Savers you can still apply for, paying upwards of 4%, taking another £1,500  a month. So you can stick at least £27,000 a year into 4%+ accounts, not counting the 5% Barclays Rainy Day Saver.

Obviously, I don't know what your mortgage interest rate is, so I don't know whether these accounts would matter to you.

jak22

happybagger said:

I'm not so sure. This months inflation figures are announced on the first day of the 2 day BoE moc meeting. The numbers will be ringing in their earholes. And although fuel prices have moderated, helped by stronger stirling, energy hasn't, and neither will it before next summer. By this time there will be very limited help from UK gov to reduce it unless you're on benefits so it will continue to feed into inflation.

And remember the inflation figure compares to where it was over a year ago, which is when prices started to rocket. Until that period drops out of the lagging12 month stat, then the figure will remain high.

I also think that as the gap between instant access and fixed rate has narrowed, fixes will go above 5% before the end of January.

Just my view and others have differing opinions of course.

The EA rates ought to rise this month assuming the BoE rate rises - current EA rates arent that great anyway being mostly below BoE. Assuming fixed rates are influenced by predictions of where the BoE rate and EA rates will be in a year or so then it's natural for fixed rates to stabilise and the gap to narrow - there isnt some minimum gap that has to be maintained.  

happybagger

Indeed there isn't, but it's rare for it to occur, as the consumer view is "why would I fix at a lower rate than if I have instant access?". in fact I'd be interested if it has happened for any sustained period other than the period when the western world was shut down

t1redmonkey

happybagger said:

Indeed there isn't, but it's rare for it to occur, as the consumer view is "why would I fix at a lower rate than if I have instant access?". in fact I'd be interested if it has happened for any sustained period other than the period when the western world was shut down

There would still be an incentive to fix even when the gap narrows between the easy access and fixed bonds though; that being the expected reduction in interest rates at some point in 2023/24 which in turn will reduce easy access rates, whereas someone who fixed will continue to receive interest at whatever rate they fixed at.

TiVo_Lad

Trying to call the peak of fixed rates is like trying to call the Stock Market, but the focus should be on the entire period of the fix. If variable rates fall below your fix for longer than they're above your fix (by the same amount), you're better off over the period of the fix. Fixing is also about certainty; at least you know what you'll walk away with at the end of the fix.

Some people also use fixing to help with income tax. A fix can be used to defer (taxable) interest into future years and potentially reduce your marginal rate if you're currently paying a higher rate but expect to pay a lower rate in the future. It's ultimately about what works for your personal circumstances.

Band7

Chorley BS 6-access saver 2.75% from 15/12/2022

https://www.chorleybs.co.uk/savings-rate-increase/

Zaul22

It's complicated at the moment cos on one hand Atoms 6 month fix has gone down and easy access have been stalled for a month, but on the other had regular savers are going up and letting you put more money in them. 

jak22

happybagger said:

Indeed there isn't, but it's rare for it to occur, as the consumer view is "why would I fix at a lower rate than if I have instant access?". in fact I'd be interested if it has happened for any sustained period other than the period when the western world was shut down

As rates have been rising fixing with a large enough gap means that although variables  will catch up and even overtake, the amount earned in the fix could still work out more over the year.

Now fixes are flattening it's possible to consider longer fixes with a smaller gap as over those years there's the possibility of variable rates peaking.

If variable rates do then start to reverse then fixing at a slightly lower rate can, again, end up earning more than in a falling easy access.

Also its wise to spread among different terms and access conditions.

But this is an easy access thread...

BooJewels

If I may ask a sort of side question - I've opened an online account with Nationwide and having now got the various codes etc to get access to the Internet Bank I want to send a test payment from another bank before I fully fund it .  Their instructions are a little vague:

• Pay money into the account from another UK current account by using your savings account sort code and account number, you can find this on your welcome letter or on the Internet Bank.

Normally, transferring to savings, you'd send it to the organisations own bank, with your account no. as a reference.  Do I send it as to a business or personal account, with my name or theirs - and does it still require my customer no. as a reference.  Normally such institutions are quite explicit in their instruction.  As soon as I put the sort code in, it identified it as Nationwide.  I'm very close to just not bothering to fund it and let it close.