The Top Fixed Interest Savings Discussion Area

FindingBBob

Johnjdc said:

andyhicks88 said:

Do you think the boe rate rise tomorrow will lead to any rises with fixed rates or will they probably keep going their downwards trend?

BoE rate rise, if it even happens, will have no effect whatsoever on fixed rate. 0.5% is factored in. They may do 0.25% in which case the market will take that as a signal of a lower peak and fixed rates might fall. In the unlikely event that they do .75% they might go up, but I think the lower than expected inflation this morning has put paid to any slim chance of that. Gilts have been edging up so I'd expect the best 1-2 year fixed rates to stay within the 4.25 to 4.75% range for the foreseeable unless anything significant happens.

Spot on John- also worth noting that last Christmas (there is a song there) BoE increased rates and hardly anyone moved until well in to January  - would expect the same this year. I would actually expect some of the market leaders to pull products ahead of Christmas, though not cut rates. 

refluxer

Just in case this is useful to anyone, Barclays have introduced a Flexible Cash ISA which is fixed at 4.00% for a year.

Barclays 1-Year Flexible Cash ISA @ 4.00%

• Fixed rate of 4.00% p.a. AER/tax-free for 1 year
• Make three free withdrawals, each one of up to 10% of your current balance
• Open with £1 (£0 for transfers-in) to £1 million
• Transfer-in your existing ISA for a limited period

Monthly interest (if chosen) can be paid out to a Barclays current account or sent via cheque.

tunde10

peter021072 said:

I've applied to open accounts with Shawbrook and Hampshire Trust banks, but I intend to fund using a lower deposit (around 60-70%) then I stated on their form when applying last week.

Does anyone know if investors have to fund the exact amount they stated when they applied, and if the banks will close the account if not funded in full?

I opened a fixed Saver with MyCommunity Bank last yr and it remembers the amount stated on application.

You don't earn any interest until you put this amount in. I also don't think you can put more than stated.

So on the rare occasion you do need to fund as stated. But this is a credit union bank that that may be the reason.

Band7

tunde10 said:

peter021072 said:

I've applied to open accounts with Shawbrook and Hampshire Trust banks, but I intend to fund using a lower deposit (around 60-70%) then I stated on their form when applying last week.

Does anyone know if investors have to fund the exact amount they stated when they applied, and if the banks will close the account if not funded in full?

I opened a fixed Saver with MyCommunity Bank last yr and it remembers the amount stated on application.

You don't earn any interest until you put this amount in. I also don't think you can put more than stated.

So on the rare occasion you do need to fund as stated. But this is a credit union bank that that may be the reason.

Good grief, that sounds pretty sharp practice but not surprising. I have always shied away from MyCommunity Bank because of their confusing set-up; this is now a further reason for me not to touch them with a barge pole ever.
 

alternate

Most are, as said, for marketing purposes only.  It is usually phrased along the lines of "how much are you likely to save?" and should make it clear if it is a commitment.

Marketplaces like Raisin also make you state the amount up front and it is all or nothing.

peter021072

refluxer said:

Just in case this is useful to anyone, Barclays have introduced a Flexible Cash ISA which is fixed at 4.00% for a year.

Barclays 1-Year Flexible Cash ISA @ 4.00%

• Fixed rate of 4.00% p.a. AER/tax-free for 1 year
• Make three free withdrawals, each one of up to 10% of your current balance
• Open with £1 (£0 for transfers-in) to £1 million
• Transfer-in your existing ISA for a limited period

Monthly interest (if chosen) can be paid out to a Barclays current account or sent via cheque.

This looks competitive but I think you have to apply to a high street Barclays with ID unless you already have an account with them.  It directs you to apply for on-line banking then asks you what type of account you have with them!

MiserlyMartin

Looks good actually, for now. Question is, will the top payer Virgin raise to 3.5% after todays rise? We will likely go another 0.5% at the next MPC meeting too. It will probably be March until 4% becomes a poor rate. But you will be stuck in this account for a year, or pay a 90 day interest penalty to transfer out. I wouldn't jump at this one.

alternate

Which virgin account are we talking about?

StayinAlive

In respect of the Barclays 2 year fix ISA, I note one of the conditions is "I apply to subscribe for a cash ISA for the tax year 2022/2023 and each subsequent year until further notice.(Please note that this does not commit you to make further subscriptions)".

Firstly, that wording seems a contradiction to me and second, as we are only allowed one new ISA a year, and I don't want next years to be a Barclays ISA, is that going to be a problem?

Band7

StayinAlive said:

In respect of the Barclays 2 year fix ISA, I note one of the conditions is "I apply to subscribe for a cash ISA for the tax year 2022/2023 and each subsequent year until further notice.(Please note that this does not commit you to make further subscriptions)".

Firstly, that wording seems a contradiction to me and second, as we are only allowed one new ISA a year, and I don't want next years to be a Barclays ISA, is that going to be a problem?

Just ignore the confusing words. They are standard at most ISAs. You can open, and subscribe (i.e. pay new money into) the Barclays ISA this year*, and then another ISA next financial year with a completely different ISA provider.

*assuming you haven't yet paid into an ISA this financial year

Please go to the ISA board for further discussions of ISAs https://forums.moneysavingexpert.com/categories/isas-tax-free-savings