Is it unwise to open a 1-yr Fixed savings at this time?

JamesCoffeeKirk

I'm considering moving 80k savings from a low interest variable 0.85% to a fixed 12 month account 1.45%, thinking.there is a good possibility that interest rates won't go up for at least 6 months? Since bank rates have been low for a long time now, does this seem reasonable to do? I don't feel comfortable with a longer term at the moment.

MK62

You can get 1.3% easy access at the moment, so no reason to accept 0.85%.
You could then put just part of your savings in a 1 yr fixed rate account at around 1.55%, if tying the whole amount up in a fixed rate account doesn't suit.

soulsaver

MK62 said:

You can get 1.3% easy access at the moment, so no reason to accept 0.85%.
You could then put just part of your savings in a 1 yr fixed rate account at around 1.55%, if tying the whole amount up in a fixed rate account doesn't suit.

You could go for a fix if you're sure you won't need access. In that event 1.55 is pretty good atm. Medium access on offer IIRC Marcus has launched a 1.45% ftb but access with a 90 day interest equiv. penalty.. 
Now I normally wouldn't give up accessibility for 0.25% (1.55 minus 1.3)... but the variable rates are trending down and if you think that diff maybe bigger soon...
And there may be slightly more flexible/better options if you pay tax on savings interest.

JamesCoffeeKirk

Have put 20k into this year's cash ISA (1yr fixed), and have set aside 20k for next year so I think I'm looking for rest of cash (80k) to put somewhere for next 12 months. Will take a look at the suggestions - thank you!

george4064

JamesCoffeeKirk said:

Have put 20k into this year's cash ISA (1yr fixed), and have set aside 20k for next year so I think I'm looking for rest of cash (80k) to put somewhere for next 12 months. Will take a look at the suggestions - thank you!

At least stick any cash that you have in the 0.85% account into a Marcus account which pays 1.3% instant access or 1.45% 1yr fix.

colsten

JamesCoffeeKirk said:

Have put 20k into this year's cash ISA (1yr fixed), and have set aside 20k for next year so I think I'm looking for rest of cash (80k) to put somewhere for next 12 months. Will take a look at the suggestions - thank you!

If you have the time and inclination, you can start a number of Regular Savings accounts. Depending on what current accounts you have, and where you live, you can shift around £40,000 into these accounts in the course of a year. 

To help you work out whether it's worth your while: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/#calculator

margaretx9

colsten said:

JamesCoffeeKirk said:

Have put 20k into this year's cash ISA (1yr fixed), and have set aside 20k for next year so I think I'm looking for rest of cash (80k) to put somewhere for next 12 months. Will take a look at the suggestions - thank you!

If you have the time and inclination, you can start a number of Regular Savings accounts. Depending on what current accounts you have, and where you live, you can shift around £40,000 into these accounts in the course of a year. 

To help you work out whether it's worth your while: https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/#calculator

Ideally pick a fixed rate regular saver such as Halifax, TSB, Virgin (both open to all) or the HSBC/First direct/M&S ones linked to a current account if you have one with them. Yorkshire BS - admittedly you can't open a new product - has just cut its variable rate regular saver rate from 2.5% to as low as 1%.
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/

cisko65

On the ''Our best buys'' page there's Vanquis Bank – 1.6% for 1yr