The Top Fixed Interest Savings Discussion Area

Alex9384

Who is waiting impatiently for 22 Jun Bank of England base rate announcement? Though, of course, we have some idea what's going to happen...

bristolleedsfan

VNX said:

bristolleedsfan said:

Thumbs_Up said:

DJDools said:

via Hargreaves Lansdown 'Active Savings':

Investec 3 year

AER  |  Gross

5.67% | 6.00%

Apply by 18/06/2023

Their must be a heck of a lot Hargreaves Lansdown 'Active Savings' account holders on here because this post hasn’t drawn in any comments, what gives. I mean 6% for 3 years from a well established  bank, most pension funds or dividends won’t beat this.

Interest is not compounded, higher applied rate instead, 5.67% is rate it would be if interest was compounded, misleading to plug it as 6% for 3 years.

This, and we will get to 5.67 soon across the board 

That and fact interest is stated on H.L active listing to be paid at maturity which does not suit many consumers, easy to see why  "this post hasn’t drawn in any comments", fair to say had been many posts on the same subject a relatively short time ago.   

ZeroSum

DJDools said:

SJMALBA said:

Shawbrook have increased their fixes, including:

9 month - 4.92%
1 Year - 5.37%
18 Month - 5.36%
2 Year - 5.35%

https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

Interesting that they are offering (marginally) higher interest on the 1 year than, say, the 2 and 3 year...

Quite a few banks are giving better rates on the shorter term fixes given the market expectations are that rates will drop in the medium term

becky_rtw

We use on maturity but I agree I'd want compounded in that case. Anyway we don't have any more cash available yet to lock away yet so fingers crossed rates last until we do. 

Thumbs_Up

Alex9384 said:

Who is waiting impatiently for 22 Jun Bank of England base rate announcement? Though, of course, we have some idea what's going to happen...

The official figures for inflation will be released on the 21st June.

This means the governor won’t need his blindfold when he pins the tail on the donkey.

bristolleedsfan

ZeroSum said:

DJDools said:

SJMALBA said:

Shawbrook have increased their fixes, including:

9 month - 4.92%
1 Year - 5.37%
18 Month - 5.36%
2 Year - 5.35%

https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

Interesting that they are offering (marginally) higher interest on the 1 year than, say, the 2 and 3 year...

Quite a few banks are giving better rates on the shorter term fixes given the market expectations are that rates will drop in the medium term

Mark Carney has been saying the opposite last few days, of course he might be wrong, best for balanced views to be aired 

"Mortgage rates will stay high for years and beyond end of most fixed-rate deals, warns former Bank of England boss"

https://www.thisismoney.co.uk/money/article-12197535/Latest-mortgage-news-rates-remain-high-years-says-former-Bank-governor.html

bristolleedsfan

ZeroSum said:

DJDools said:

SJMALBA said:

Shawbrook have increased their fixes, including:

9 month - 4.92%
1 Year - 5.37%
18 Month - 5.36%
2 Year - 5.35%

https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

Interesting that they are offering (marginally) higher interest on the 1 year than, say, the 2 and 3 year...

Quite a few banks are giving better rates on the shorter term fixes given the market expectations are that rates will drop in the medium term

I would say very little difference between shorter term fixes and  longer fixes, many banks/building societies do not offer longer term fixes e.g 4- 5 years.

https://moneyfactscompare.co.uk/savings-accounts/

ZeroSum

bristolleedsfan said:

ZeroSum said:

DJDools said:

SJMALBA said:

Shawbrook have increased their fixes, including:

9 month - 4.92%
1 Year - 5.37%
18 Month - 5.36%
2 Year - 5.35%

https://www.shawbrook.co.uk/direct/savings/personal-savings/fixed-rate-bonds/

Interesting that they are offering (marginally) higher interest on the 1 year than, say, the 2 and 3 year...

Quite a few banks are giving better rates on the shorter term fixes given the market expectations are that rates will drop in the medium term

Mark Carney has been saying the opposite last few days, of course he might be wrong, best for balanced views to be aired 

"Mortgage rates will stay high for years and beyond end of most fixed-rate deals, warns former Bank of England boss"

https://www.thisismoney.co.uk/money/article-12197535/Latest-mortgage-news-rates-remain-high-years-says-former-Bank-governor.html

That isn't the opposite of what I said though. They'll likely to be still high, just in 5 years they'll be just a bit less high than what they are jow

refluxer

I note we're getting tantalisingly close to an average return of 6% PA for a 5-year fixed rate, if interest is allowed to compound.

Unfortunately, Tandem (at 5.35%) only allows interest to be paid away, otherwise this would have given around 5.95%.

I reckon we need a 5-year fix at around 5.39% (which allows compounding) to achieve 6% PA (although this might vary slightly depending on whether interest is added monthly or annually)... that's using my simple Excel-based calculations, at least !

pecunianonolet

refluxer said:

I note we're getting tantalisingly close to an average return of 6% PA for a 5-year fixed rate, if interest is allowed to compound.

Unfortunately, Tandem (at 5.35%) only allows interest to be paid away, otherwise this would have given around 5.95%.

I reckon we need a 5-year fix at around 5.39% (which allows compounding) to achieve 6% PA (although this might vary slightly depending on whether interest is added monthly or annually)... that's using my simple Excel-based calculations, at least !

How would that be calculated please?