The Top Fixed Interest Savings Discussion Area

Bigwheels1111

ScarletBea said:

But should we be fixing for 3 years now? Even 2 years feels too much, the max I've done recently is 18 months...

The Bank of England sit 4 more times this year, with inflation running at 9.1%.
I would assume that translates to 4 more rises.
But who knows.

I have 2 pots to invest in August and September.
I think I might fix for 6 months and keep on in Chase at 1.5%.
Holding out for 4% or 5% for 5 years paid annually. You can hope 😜

Rollinghome

Bigwheels1111 said:

ScarletBea said:

But should we be fixing for 3 years now? Even 2 years feels too much, the max I've done recently is 18 months...

The Bank of England sit 4 more times this year, with inflation running at 9.1%.
I would assume that translates to 4 more rises.
But who knows.

I have 2 pots to invest in August and September.
I think I might fix for 6 months and keep on in Chase at 1.5%.
Holding out for 4% or 5% for 5 years paid annually. You can hope 😜

It's a tricky one.  You could take out the best available account for just 1yr and find yourself trailing instant access accounts in six months time. 

You would of course have had the benefit of the higher rate until then, but guessing what fixed rates might be in six months time hurts my brain.  I'm probably still influenced by memories of getting 15% back in the day.

ZeroSum

ScarletBea said:

But should we be fixing for 3 years now? Even 2 years feels too much, the max I've done recently is 18 months...

I'm hedging my bets a bit & spread some of mine out across, 6month, 1 year & bit at 2 & 3 year. 

Bobblehat

ZeroSum said:

ScarletBea said:

But should we be fixing for 3 years now? Even 2 years feels too much, the max I've done recently is 18 months...

I'm hedging my bets a bit & spread some of mine out across, 6month, 1 year & bit at 2 & 3 year. 

I'm doing a similar spread but starting at 95 day notice (with notice given on day 1 or 2) but not going as far as 2 year yet!

Thanks to those who posted this strategy on here a while ago 

MDMD

Andrew Bailey hinted yesterday that low interest rates may return sooner than expected once inflation is under control 

However, Bailey suggested that low interest rates will return once the effects of COVID and the war in Ukraine fade.

“Cyclical adjustments in short-term nominal interest rates – like those we are currently witnessing in the United Kingdom and abroad – will for the foreseeable future continue to be played out against the backdrop of low global equilibrium real interest rates,” Bailey said.

https://uk.news.yahoo.com/bailey-bank-of-england-will-bring-inflation-down-no-ifs-or-buts-173938471.html

jimexbox

MDMD said:

Andrew Bailey hinted yesterday that low interest rates may return sooner than expected once inflation is under control 

However, Bailey suggested that low interest rates will return once the effects of COVID and the war in Ukraine fade.

“Cyclical adjustments in short-term nominal interest rates – like those we are currently witnessing in the United Kingdom and abroad – will for the foreseeable future continue to be played out against the backdrop of low global equilibrium real interest rates,” Bailey said.

https://uk.news.yahoo.com/bailey-bank-of-england-will-bring-inflation-down-no-ifs-or-buts-173938471.html

The last 12 years of base rates has been way out of the ordinary, its most definitely not the norm. Brought on by the financial crash and resulting quantitative easing.

Bailey failed to act quick enough and is now playing catch up. I take his predictions with a large pinch of salt. 

Thumbs_Up

If the BoE get’s this wrong it will make Thatcher’s 1980’s seem like a tea party.

MACKEM99

MDMD said:

Andrew Bailey hinted yesterday that low interest rates may return sooner than expected once inflation is under control 

However, Bailey suggested that low interest rates will return once the effects of COVID and the war in Ukraine fade.

“Cyclical adjustments in short-term nominal interest rates – like those we are currently witnessing in the United Kingdom and abroad – will for the foreseeable future continue to be played out against the backdrop of low global equilibrium real interest rates,” Bailey said.

https://uk.news.yahoo.com/bailey-bank-of-england-will-bring-inflation-down-no-ifs-or-buts-173938471.html

I suspect it will be a long way away.

Patr100

MDMD said:

Andrew Bailey hinted yesterday that low interest rates may return sooner than expected once inflation is under control 

However, Bailey suggested that low interest rates will return once the effects of COVID and the war in Ukraine fade.

“Cyclical adjustments in short-term nominal interest rates – like those we are currently witnessing in the United Kingdom and abroad – will for the foreseeable future continue to be played out against the backdrop of low global equilibrium real interest rates,” Bailey said.

https://uk.news.yahoo.com/bailey-bank-of-england-will-bring-inflation-down-no-ifs-or-buts-173938471.html

I do not think  the first sentence quoted from that report necessarily follows from the Bailey quotation.
And the "foreseeable future" is a pretty vague concept. As others have said, the BoE has been poor at predictions.
From the same article:

Inflation is expected to be back to its 2% target in around two years' time, he said, although pressure on gas prices following the war in Ukraine could change that.

Patr100

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