The Top Fixed Interest Savings Discussion Area

VNX

So many variables in place that are individual to us all.

when one may require the funds to mature, how much money is to be locked away , appetite to wait or fix and put to bed etc.

sure rates are on the up who knows max fix of say 6.5/6.75% in a couple / few months?

when we all fix is individual, from my point of view, to be in a position of deciding when to fix monies for the best return is a good place to be, whatever I may fix at.

many people would love to have spare money to lock away but aren’t in a position to have the money, and many people are heading fir serious mortgage pain so whatever my rates ends up being Vs future rates, I won’t grumble.

nice problem to have. 

jaypers

I’ve put my fixing plans on hold until things settle down again. At present, the only way is up and I think there will be time to grab some better deals in the coming 2-3 months. Goalposts keep moving and I can’t see that being downwards yet a while. 

Secret2ndAccount

Remember also that spending is a very effective way to combat inflation. If you can afford it, and the purchase is reasonable, now is a good time. So redecorate; fix the plumbing; buy a more energy efficient freezer. All of those things will cost 8.7% more a year from now, and I don't see anyone offering 8.7% interest

pecunianonolet

Secret2ndAccount said:

Remember also that spending is a very effective way to combat inflation. If you can afford it, and the purchase is reasonable, now is a good time. So redecorate; fix the plumbing; buy a more energy efficient freezer. All of those things will cost 8.7% more a year from now, and I don't see anyone offering 8.7% interest

Not sure if I understand your logic. You are saying that if I buy a new freezer today vs next year it is cheaper today? Do you have a crystall ball saying that when in June 2024 inflation numbers are published we will still have 8.7%? In which case, your claim would be correct. Should those numbers next year be reported to be 2.5% inflation. Your fridge would only be 2.5% more expensive. Should we enter deflation and the number would be -0.5% your fridge would be 0.5% cheaper next year.

RG2015

Secret2ndAccount said:

Remember also that spending is a very effective way to combat inflation. If you can afford it, and the purchase is reasonable, now is a good time. So redecorate; fix the plumbing; buy a more energy efficient freezer. All of those things will cost 8.7% more a year from now, and I don't see anyone offering 8.7% interest

I like your thinking, but....

Not everything will be 8.7% more expensive for at least two reasons.

First, the 8.7% relates to the year ended 31 May 2023 and second the range of individual item inflation is very wide. Buying a house is a point in question. Many are forecasting a house price slump.

What you can say is that on average most items will be significantly more expensive in a year's time.

RedImp_2

I fixed a few months ago at 4.4% for 1 year, and of course rates are now much higher but to counter that then of course I’ve earned more in that period than if I’d left in an EA account for that period so it’s not as straightforward as wishing you’d waited for the higher rate.  

That said I do regret the smaller pot I’ve still got in a 1.5% till January!  But swings and roundabouts on a different topic I’m still on an energy fix from before prices started going up.

Secret2ndAccount

pecunianonolet said:

Secret2ndAccount said:

Remember also that spending is a very effective way to combat inflation. If you can afford it, and the purchase is reasonable, now is a good time. So redecorate; fix the plumbing; buy a more energy efficient freezer. All of those things will cost 8.7% more a year from now, and I don't see anyone offering 8.7% interest

Not sure if I understand your logic. You are saying that if I buy a new freezer today vs next year it is cheaper today? Do you have a crystall ball saying that when in June 2024 inflation numbers are published we will still have 8.7%? In which case, your claim would be correct. Should those numbers next year be reported to be 2.5% inflation. Your fridge would only be 2.5% more expensive. Should we enter deflation and the number would be -0.5% your fridge would be 0.5% cheaper next year.

The highest fixed rate available for 1 year is 5.7%. By buying now you will be ahead if inflation over the next 12 mths is > 5.7% (4.xx for taxpayers). However, before I dragged this thread off topic, it was about fixing your rate. The people here are ready to lock in - to take a guaranteed rate, even if they know there's a risk that it might turn out to have lost them money. 
If you buy now, it's not just a question of whether you gain or lose - it's a lock-in. You know you can afford a freezer today. You don't know if you can afford it tomorrow. 
I restate that spending money (sensibly) now is at least as good a hedge against inflation as putting that money in a fixed term account and hoping to beat CPI

VNX

RedImp_2 said:

I fixed a few months ago at 4.4% for 1 year, and of course rates are now much higher but to counter that then of course I’ve earned more in that period than if I’d left in an EA account for that period so it’s not as straightforward as wishing you’d waited for the higher rate.  

That said I do regret the smaller pot I’ve still got in a 1.5% till January!  But swings and roundabouts on a different topic I’m still on an energy fix from before prices started going up.

This is true, also your one year fix ends sooner than if you’d waited a couple of months, you may then get a better rate when your one year fix ends than in say 14/15 months time.

get the best rate you can but there are so many other factors and variables at play.

StayinAlive

RG2015 said:

I favour the 12 month ladder system for 1 year fixes. I now have accounts maturing towards the end of every month until May 2024.

These maturing fixes range from 2.45% next week to 4.96% in May 2024.

Hopefully rates will be close to 6% when I am in the market next week.

I took that route as well with maturities ranging from 2.61% next week to 5.56% next June.

It takes the pressure off decision making.

janusd

Oxbury 1 & 2-Yr fixes @ 5.59%; existing users can get 5.64% from them.