The Top Fixed Interest Savings Discussion Area

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inspectorperez said:

I'm told that I could make token investment within 7 days of opening the account (say£1K) and then further funds within 14 day cooling off period which starts ticking after the initial 7 day period ends.

A “token investment” would be a £1. I think banks understand people in general don’t want to open an account with initial investment of £1000 or £5000 or god forbid £50,000!

Consumerist

Sea_Shell said:

janusdesign said:

Sea_Shell said:

Hard to know whether to go "all in" a 1 year now, or hedge your bets and "drip" money in, every two months or so, in say £5000 chunks, depending on what accounts (rates) become available.

Jam today, or (potentially) more jam tomorrow?!?

I was thinking the same thing recently... i'm leaning towards a cascade drip into multiple accounts rather than filling FSCS limits... though i'm 4 months away from some of my fixed accounts maturing, so who knows what the situation will be like then.

It's like regular savers on steroids! 😉
Maybe someone can come up with the formula to calculate what the rate needs to be before you've "lost out" by going all in, rather than waiting, say 2 months on any given amount?
If you go now, for say a 1year rate 0.8% above your current instant access holding, what does the difference need to be before waiting 2 months would've been best??
Over to the brains...

My argument would be that you haven't really LOST anything, you've only deferred getting it.

Sea_Shell

Consumerist said:

Sea_Shell said:

janusdesign said:

Sea_Shell said:

Hard to know whether to go "all in" a 1 year now, or hedge your bets and "drip" money in, every two months or so, in say £5000 chunks, depending on what accounts (rates) become available.

Jam today, or (potentially) more jam tomorrow?!?

I was thinking the same thing recently... i'm leaning towards a cascade drip into multiple accounts rather than filling FSCS limits... though i'm 4 months away from some of my fixed accounts maturing, so who knows what the situation will be like then.

It's like regular savers on steroids! 😉
Maybe someone can come up with the formula to calculate what the rate needs to be before you've "lost out" by going all in, rather than waiting, say 2 months on any given amount?
If you go now, for say a 1year rate 0.8% above your current instant access holding, what does the difference need to be before waiting 2 months would've been best??
Over to the brains...

My argument would be that you haven't really LOST anything, you've only deferred getting it.

Yes, it's more FOMO than a "loss", as you've still gained, but possibly not by as much as if you'd waited and then a really super-duper rate came along.



I'm off to polish my balls... crystal ones that is😎

Patr100

Yeah, though short term eg to next year may possibly still be on the rise , the longer term if inflation
is reduced next year as proposed (a big "if" , given some uncertainty) , do interest rates get cut or stick at still historically low levels? And if interest rates are one of the  few anti-inflationary  levers the BoE can pull maybe they will keep the level so they can reduce if necessary later?

Bigwheels1111

I hoping that by the end of September the boe will have made 3 more base rate rises.
Might get 3.5-4% by then, but who knows.

ranciduk

Rishi Sunak's energy bill support may prompt the Bank of England to push up interest rates even further, City experts warned. 

The Chancellor has vowed to give every household £400 to help with bills. The total cost of the support will be £21billion. 

But some economists fear this could put more money in the hands of consumers who don't need it. If they spend the money on other goods, prices will rise, adding to the cost of living crisis. 

Paul Dales, at Capital Economics, said: 'It won't relieve all the pain and may mean the Bank of England has to pull the interest rate lever harder to reduce inflation.' 

Expotter

Bigwheels1111 said:

I hoping that by the end of September the boe will have made 3 more base rate rises.
Might get 3.5-4% by then, but who knows.

I'd like to see that as well, unfortunately I'd say you're being rather too optimistic (or negative if you're planning to get a mortgage). Next Bank of England meetings 

Thursday 16 June
Thursday 4 August
Thursday 15 September
Thursday 3 November
Thursday 15 December

So if we get 3x 0.25% (could be more, but don't forget there's a recession looming and they wouldn't want to precipitate it) between now and end of October that would make the base rate 1.75%. At the moment best easy access is 0.5% above base rate, potential 2.25%? Best 1 year fixed rate now around 1.3% above base would make 3.05%?
Just speculating really, so who knows?

inspectorperez

Expotter said:

Bigwheels1111 said:

I hoping that by the end of September the boe will have made 3 more base rate rises.
Might get 3.5-4% by then, but who knows.

I'd like to see that as well, unfortunately I'd say you're being rather too optimistic (or negative if you're planning to get a mortgage). Next Bank of England meetings 

Thursday 16 June
Thursday 4 August
Thursday 15 September
Thursday 3 November
Thursday 15 December

So if we get 3x 0.25% (could be more, but don't forget there's a recession looming and they wouldn't want to precipitate it) between now and end of October that would make the base rate 1.75%. At the moment best easy access is 0.5% above base rate, potential 2.25%? Best 1 year fixed rate now around 1.3% above base would make 3.05%?
Just speculating really, so who knows?

Interesting post and providing some clues for anyone who wants to do the maths of investing today on 2 year deal at 2.76% or waiting till back end of the year and see what's available.

SJMALBA

Given no MPC meeting in July, any chance of >0.25% increase in June, I wonder?

southone

BOE meets every 6 weeks so will be months without a meeting but who knows if we will get a +0.25% lift 3 members voted for 0.5% this month would only need another 2 to think same to carry