The Top Fixed Interest Savings Discussion Area

Murielson

SJMALBA said:

A little underwhelming for a loyalty bond (4.2%), IMO, but:-

https://www.coventrybuildingsociety.co.uk/member/product/savings/fixed_rates/loyalty-bond-5-30-04-2024.html

'To be able to open this account, you’ll need to have held or been linked to a savings or mortgage account with Coventry Building Society, ITL or Godiva continuously since 1 January 2022 or earlier.'

4.2% not the worst just now so thanks for this as put a few bob in

Bobblehat

Murielson said:

SJMALBA said:

A little underwhelming for a loyalty bond (4.2%), IMO, but:-

https://www.coventrybuildingsociety.co.uk/member/product/savings/fixed_rates/loyalty-bond-5-30-04-2024.html

'To be able to open this account, you’ll need to have held or been linked to a savings or mortgage account with Coventry Building Society, ITL or Godiva continuously since 1 January 2022 or earlier.'

4.2% not the worst just now so thanks for this as put a few bob in

I see above comments and agree with the underwhelming thoughts, but like you, can't see anything better for under £20K. With Coventry recently emailing that they are reviewing their rates, are people expecting a better rate soon for either new or for existing (Loyalty) customers?

Middle_of_the_Road

Bobblehat said:

Murielson said:

SJMALBA said:

A little underwhelming for a loyalty bond (4.2%), IMO, but:-

https://www.coventrybuildingsociety.co.uk/member/product/savings/fixed_rates/loyalty-bond-5-30-04-2024.html

'To be able to open this account, you’ll need to have held or been linked to a savings or mortgage account with Coventry Building Society, ITL or Godiva continuously since 1 January 2022 or earlier.'

4.2% not the worst just now so thanks for this as put a few bob in

I see above comments and agree with the underwhelming thoughts, but like you, can't see anything better for under £20K. With Coventry recently emailing that they are reviewing their rates, are people expecting a better rate soon for either new or for existing (Loyalty) customers?

Bond rates have been reduced the past month or so, and could continue that way.

As for easy access rates, the rises we have recently seen have slowed, as banks try to decide their lending and borrowing strategy.

Seems they are holding off until someone makes a move, which could then see some rate improvement.

intalex

For some reason Moneyfacts has Gatehouse fixed rate (monthly interest paying filter) of 3/4/5 year bonds at both 4.45% AER and 4.35% AER. The Gatehouse website still has them at 4.45% AER so I'm not sure what this might mean, but I've opened one now as a potential home for another soon maturing fixed rate.

Bigwheels1111

I’m hoping to get the isbank deal at 4.5% for 7 years.
Ive taken out Ford money at 4.4% for 5 years if all else fails.

intalex

intalex said:

For some reason Moneyfacts has Gatehouse fixed rate (monthly interest paying filter) of 3/4/5 year bonds at both 4.45% AER and 4.35% AER. The Gatehouse website still has them at 4.45% AER so I'm not sure what this might mean, but I've opened one now as a potential home for another soon maturing fixed rate.

Gatehouse have indeed reduced the rate on 3/4/5 year fixed rate accounts from 4.45% AER to 4.35% AER.

Johnjdc

I wonder whether our general consensus that fixed rates are falling might temporarily be wrong, particularly for 1-2 year fixes?

They seem to have stabilised somewhat, meanwhile gilt yields which can be an underlying driver are having a bit of a revival. I think SONIA interbank rates are too but I only have a site which tells me what those are at any one time rather than a graph.

Gilts to the nearest 10bps:

1 year gilt:Truss Peak: 4.2% Sunak Low: 2.7% Most recent: 3.8% Increase since 2nd Feb low point: 0.47%

2 year gilt: Truss Peak: 4.6% Sunak Low: 2.9% Most recent: 3.7% Increase since 2nd Feb low point: 0.61%

I still think if you have the money doing nothing, it's better to fix now than lose out while you wait, but if the money is earning 3% easy access, maybe less clear. Possibly banks will have to follow this up and we start to see 1-year fixed closer to 4.5% again.

But maybe not!

whatleytom87

Johnjdc said:

I wonder whether our general consensus that fixed rates are falling might temporarily be wrong, particularly for 1-2 year fixes?

They seem to have stabilised somewhat, meanwhile gilt yields which can be an underlying driver are having a bit of a revival. I think SONIA interbank rates are too but I only have a site which tells me what those are at any one time rather than a graph.

Gilts to the nearest 10bps:

1 year gilt:Truss Peak: 4.2% Sunak Low: 2.7% Most recent: 3.8% Increase since 2nd Feb low point: 0.47%

2 year gilt: Truss Peak: 4.6% Sunak Low: 2.9% Most recent: 3.7% Increase since 2nd Feb low point: 0.61%

I still think if you have the money doing nothing, it's better to fix now than lose out while you wait, but if the money is earning 3% easy access, maybe less clear. Possibly banks will have to follow this up and we start to see 1-year fixed closer to 4.5% again.

But maybe not!

SONIA swaps are what banks price Fixed rates to. See here - https://www.chathamfinancial.com/technology/european-market-rates

Rate significantly lower now than they were during the truss volatility period. 

These rates effectively price in the future direct of base rate, and as you'll see have a negative yield up the terms, although it's moving around a bit at the moment and will be very data release driven this week, if you believe the market consensus then peak Fixed Bond rates very much behind us and will continue to soften from here as this all plays through. 

Take a look at Shawbrook's latest FRB pricing, one of the first to start reflecting that negative yield; many others avoid it given to most consumers it probably looks a bit strange.  

Johnjdc

whatleytom87 said:

Johnjdc said:

I wonder whether our general consensus that fixed rates are falling might temporarily be wrong, particularly for 1-2 year fixes?

They seem to have stabilised somewhat, meanwhile gilt yields which can be an underlying driver are having a bit of a revival. I think SONIA interbank rates are too but I only have a site which tells me what those are at any one time rather than a graph.

Gilts to the nearest 10bps:

1 year gilt:Truss Peak: 4.2% Sunak Low: 2.7% Most recent: 3.8% Increase since 2nd Feb low point: 0.47%

2 year gilt: Truss Peak: 4.6% Sunak Low: 2.9% Most recent: 3.7% Increase since 2nd Feb low point: 0.61%

I still think if you have the money doing nothing, it's better to fix now than lose out while you wait, but if the money is earning 3% easy access, maybe less clear. Possibly banks will have to follow this up and we start to see 1-year fixed closer to 4.5% again.

But maybe not!

SONIA swaps are what banks price Fixed rates to. See here - https://www.chathamfinancial.com/technology/european-market-rates

Rate significantly lower now than they were during the truss volatility period. 

These rates effectively price in the future direct of base rate, and as you'll see have a negative yield up the terms, although it's moving around a bit at the moment and will be very data release driven this week, if you believe the market consensus then peak Fixed Bond rates very much behind us and will continue to soften from here as this all plays through. 

Take a look at Shawbrook's latest FRB pricing, one of the first to start reflecting that negative yield; many others avoid it given to most consumers it probably looks a bit strange.  

Yes unfortunately I don't have a graph or good historical data for compounded SONIA unfortunately, just the same site as you at any given moment in time - which also shows a recent increase. Generally there's a pretty close correlation in direction of travel between Gilts and SONIA.

I think it's unlikely we'll revisit the Truss highs, but we are certainly some way off the lows. Anything might happen this week given the inflation and wages data due out, though the extent of the march higher makes one wonder if somebody thinks they know something.

I don't really see why peak fixed bond rates would continue to soften in the short term, though in the medium term they would given the yield curve will see more of the higher rate period move to the rear view mirror.

StayinAlive

Does anyone know anything about StreamBank? Or opened an account? I see they are offering a 1 year bond today at 4.15% AER. Not quite the top rate but if the customer service and ease of opening was there, I would give it a go.