The Top Fixed Interest Savings Discussion Area

hallmark

jimexbox said:

Eirambler said:

The underlying message from the BoE today seems to be that they expect interest rates over the next year to undershoot recent forecasts. So, for anyone who has been waiting for guidance or further hikes before choosing a fixed savings account, the message seems to be that fixed rates aren't expected to go much higher, if at all. So potentially time to lock in for a year or two.

Have the BoE got any prediction correct? 

Andrew Bailey predicted he'd still get his £575,000 / year salary despite failing on every level to do his job of controlling inflation.  

JGal

refluxer said:

JGal said:

What's your experience of JN bank? I have a 1 year fixed @ 4.75% but currently only have £100 in and can make 10 further payments AFAIK. For some reason I'm a bit hesitant with putting money in with JN even though I've made extensive use of challenger banks in the past.

Is there a deadline for making those additional payments ? 4.75% is obviously a leading rate for a 1 year fix at the moment but there's a BoE announcement due in a few hours so that may change in the coming days or weeks...

I'd have to check the summary box. From memory the deadline was for an initial deposit then 10 deposits any time while open. One school of thought was that today's rate increase was already factored in to the rates on offer before today's announcement. Who knows how things will change. 

Eirambler

jimexbox said:

Eirambler said:

The underlying message from the BoE today seems to be that they expect interest rates over the next year to undershoot recent forecasts. So, for anyone who has been waiting for guidance or further hikes before choosing a fixed savings account, the message seems to be that fixed rates aren't expected to go much higher, if at all. So potentially time to lock in for a year or two.

Have the BoE got any prediction correct? I'll probably drop 50% of my potential fixed pot end of November. If something very attractive turns up, I'll drop the lot in a year fixed. 

Not especially, but I think the point they're making here is that, when inflation is being caused by supply issues rather than booming consumer demand, there's only so much raising interest rates will achieve in terms of reducing inflation. So, by going as high as had been forecast, they risk further damaging the economy with actually having much impact on inflation in return. 

So a lot of logic to the argument that we won't see many further increases in fixed savings rates on the basis of this guidance.

Patr100

Worth remembering the recent prediction of huge rises were partly due to the disastrous  mini budget -
pre mini budget they were still predicted to rise til at least mid 2023.
However if we are now in recession, that complicates things further.
I would be happy with anything nearer 5% for a fix in the next month or so.

biscan25

Swap/gilt rates broadly unchanged( less than 0.05%) since the announcement. Suggests this was fully priced in by the market (leaky BoE again). So no material impact on fixed rate savings. I'd therefore expect rates to come down slightly from their current highs.

alternate

They can try and talk it down all they want but in reality - they will broadly follow what the fed does and the fed has signaled continued rises for the foreseeable future (albeit likely in smaller jumps).

Unless something unexpected happens (like say someone defenestrating Putin) inflation isn't going away any time soon.

Consumerist

hallmark said:

Andrew Bailey predicted he'd still get his £575,000 / year salary despite failing on every level to do his job of controlling inflation.  

He failed miserably at Ofgem so who on earth expected him to succeed at BoE. Seems to me to be failure by design.

intalex

intalex said:

intalex said:

hallmark said:

Coventry have withdrawn all their Fixed-rate ISAs.  Going by their usual pattern they'll release a new bunch this week. They're usually pretty competetive.

If you had already opened but not yet funded Coventry's fixed rate (non-ISA) bonds, I've been informed by their live chat team that the window to deposit is until 11th November, i.e. not the usual 14 calendar days. That should cover the next BoE announcement, aftermath, and some more, before needing to make a decision...

New slightly lower rates (vs last batch) released by Coventry

Whilst new variable rates have been announced promptly, my guess is they'll wait until after 11 November to see how much deposits they collect in the earlier issues of fixed rates which savers had already opened, before deciding what new fixed rates to offer...

Alpine_Star

Alpine_Star said:

I have a 2 year fix maturing with JN Bank later this month and I received the usual email asking what I'd like to do with it.




Here's the summary document of 'current rates' they attached which has on it 'Effective from 21 October 2022'.




So 3 issues really.

1) According to their website they're not currently offering any new fixes. So would they only be offering them to existing customers?

2) The 1 year fix at 4.75% is higher than anything I've seen being shown here or at Moneyfacts at the moment.

3) The 4 & 5 year fixes are lower than the 1 & 2 year fixes which seems odd.

Obviously I'll raise these queries with them but has anyone got any clues?

Well the plot thickens.

On querying it I get an email saying that the 2 year fix is 2%. So that's 3 different rates I've been quoted within 24 hours. 

Alpine_Star

......they just called and offered me the 2 year at 5%!