The Top Fixed Interest Savings Discussion Area

Zaul22

Tackling inflation probably is a task for the IMF... impossible mission force. 

VNX

The impact of 9%+ interest rates on people would be catastrophic for the whole economy (apart from savers with no mortgage of course)

metrobus

[Deleted User] said:

VNX said:

The impact of 9%+ interest rates on people would be catastrophic for the whole economy (apart from savers with no mortgage of course)

The BOE keeping the "emergency" rate at near zero % for 10 years instead of around a normal 5% caused the issue.

The truest words ever spoken on this forum.

Carney continually talking the £ down for the benefit of his banker mates who made billions from his actions.

And Bailey doing exactly the same thing with every rate rise so far coupled with a speech talking the pound down to stop the rise in Sterling that would be expected.

ColdIron

Investec offering 5.00% on a one year fix, min £5,000, also via HL

https://savings.investec.com/fixed-rate-saver

VNX

[Deleted User] said:

VNX said:

The impact of 9%+ interest rates on people would be catastrophic for the whole economy (apart from savers with no mortgage of course)

The BOE keeping the "emergency" rate at near zero % for 10 years instead of around a normal 5% caused the issue.

I don’t disagree with past mistakes that were made certainly 

bristolleedsfan

https://twitter.com/m_bathgate/status/1661277155152502784

"Bank of England Base Rate expectations soaring on disastrous inflation numbers. 5.5% rate now expected by end of 2023"

t1redmonkey

Looks like we're gonna see higher interest rates on fixes then, those inflation figures were not what was expected.

sparkiemalarkie

ColdIron said:

Investec offering 5.00% on a one year fix, min £5,000, also via HL

https://savings.investec.com/fixed-rate-saver

I managed to get a 2yr 5.07% yesterday with Investec on HL but it has already disappeared from the list - maybe to increase the rate.
There is an option for me to cancel for a few days yet if things get better

cwep2

Inflation data out this morning was above expectations, particularly core inflation (expected 6.2% actual 6.8%) which means expectations of the Bank of England rate have surged higher this morning and also Gilt yields. The market expects more rate hikes by BoE today than they did yesterday, and in financial markets you can get 0.3% higher yield for 2yr lending and 0.2% higher yield for 5yr lending (compared to yesterday) and probably more importantly this is on top of big moves up over the last week - the 2yr is up over 0.6% in a week and 5yr up over 0.5%.

Fixed savings accounts tend to lag these interest rate markets by weeks. Based on today's data and recent moves, I would expect the rates offered by fixed savings from 1-5yrs to go up quite a lot from what is being offered today. To put some numbers on that I would expect >5.3% in 1yr fixes to be available by this time next month.

You can always apply for a fix now, and choose not to fund it, you normally have two weeks to do so. If offered rates go up, apply for higher rate, rinse and repeat. This tactic is probably especially relevant if you are thinking about taking out a fixed rate bond right now.

Of course leaving money at 3.8% instant access vs 5% fixes available this morning costs you 1.2% for the time being, so if fixes only go up by 0.1% in a month then you've lost 1.2% x 1 and only gained 0.1% * 11 which is less, but the prospect of getting 0.3-0.5% more x 11 months would be a significant gain.

Disclaimer: This is not financial advice, I am offering my own personal opinion on what is likely to happen.

Gollygumdrops

@t1redmonkey
Yes I have just gone to open said 5% account only to find out that you can only have ONE SMARTSAVE Account open at a time.  As I opened their 4.82% beginning of May I cannot open this one!  I have never come across this restraint before!
Oh well, I will have to wait for another bank/building society to offer 5% and add another name on my list of banking accounts!