The Top Fixed Interest Savings Discussion Area

dharm999

retiringtoosoon said:

because people want to pay a chunk off their mortgage when their current fix expires in 2 to 3 years time.

That's exactly what I am doing, mortgage up in July 2026, so not fixing for more than 3 years.  Have one for 1 year, one for 2 year and a third for 3 years, just to give me some flexibility

bristolleedsfan

bundoran said:

metrobus said:

pokemaster said:

Don't think I seen it mentioned on here but Halifax have silently updated their fixes:

1 year - 4.80%

2 years - 4.85%

you also get an extra 0.05% if you have been a customer for longer than 40days

I hope this isn’t taken the wrong way and not a criticism, but why would anyone be interested in 4.85% for a 1 year fix when there is 5.5% plus available elsewhere? 

No doubt there is a reason.

Because you can close them early: 

"If you close the account early, for the one year term account you’ll be charged the equivalent of 90 days’ gross interest. For the two year term account you’ll be charged the equivalent of 180 days’ gross interest".

https://www.halifax.co.uk/savings/fixed-term/fixed-saver.html

Slightly higher rates than Halifax, same withdrawal terms

https://www.lloydsbank.com/savings/online-fixed-bonds.html

janusdesign

vickyholly said:

Morning, i have 50k to put into a fixed saving account, i need to take monthly interest as income. Im thinking i should take a 5yr fixed account for long term guaranteed income, but i see so many people fixing at 2 and 3 yr fixes. Am i missing something?

always remember that once it's locked away, you won't be able to access the £50k itself in that time (whether it be 1yr or 5-yr depending on the fix) - so you will need to work out if there are any likely / possible circumstances in which you might need to get your hands on that £50k during the length of the fix.

BooJewels

@vickholly At the moment, the optimal interest rates seem to be on the 2 and 3 year fixes - the 5 years are generally at a lower rate. 

As I understand it, the interest rate is set by the organisation anticipating what the market might be doing in the future - during the life of the fix, so as inflation is targeted to fall significantly over the next few years, interest would likely do the same, so these places don't want to offer too high a rate for the longer term fixes.

I too am about to fix and want monthly interest paid out and I'm looking at Recognise Bank who are offering a 3 year at 5.7% with monthly interest - that would give you around a monthly average of £237.50 and Charter Savings Bank at 5.55% for monthly interest - payment of around £231.25.  Both will pay out to your nominated current account.  There are others, but they're the best at the moment that meet my own personal criteria.

easysaver

BooJewels said:

@vickholly At the moment, the optimal interest rates seem to be on the 2 and 3 year fixes - the 5 years are generally at a lower rate. 

As I understand it, the interest rate is set by the organisation anticipating what the market might be doing in the future - during the life of the fix, so as inflation is targeted to fall significantly over the next few years, interest would likely do the same, so these places don't want to offer too high a rate for the longer term fixes.

I too am about to fix and want monthly interest paid out and I'm looking at Recognise Bank who are offering a 3 year at 5.7% with monthly interest - that would give you around a monthly average of £237.50 and Charter Savings Bank at 5.55% for monthly interest - payment of around £231.25.  Both will pay out to your nominated current account.  There are others, but they're the best at the moment that meet my own personal criteria.

That's not how I understand it. I'm probably wrong but I thought that product rates were determined (and indeed, funded) by swap rates, which at present show ~0.5% drop from 3yr to 5yr.

vickyholly

BooJewels said:

@vickholly At the moment, the optimal interest rates seem to be on the 2 and 3 year fixes - the 5 years are generally at a lower rate. 

As I understand it, the interest rate is set by the organisation anticipating what the market might be doing in the future - during the life of the fix, so as inflation is targeted to fall significantly over the next few years, interest would likely do the same, so these places don't want to offer too high a rate for the longer term fixes.

I too am about to fix and want monthly interest paid out and I'm looking at Recognise Bank who are offering a 3 year at 5.7% with monthly interest - that would give you around a monthly average of £237.50 and Charter Savings Bank at 5.55% for monthly interest - payment of around £231.25.  Both will pay out to your nominated current account.  There are others, but they're the best at the moment that meet my own personal criteria.

Hi, yes ive been looking at those two banks too, but keep hesitating incase a 5yr fix increases

Doctor_Who

Not sure if these have already been mentioned, but I couldn't find them in the last ~5 pages:

Oak North 5.78% for 1 year
Oxbury 5.78% for 1 year

judexx

VNX said:

I’m sure it will be surpassed but Oxbury with a nice 5.8% one and two year for existing customers.

just for info if youre not an existing customer open any random account with Oxbury and once you’re logged in you can then open an existing customer account to get a better rate than to Joe public.

Was going to go with Oxbury, but just noticed there's no telephone no. to contact them - may not bother some - but having just had a problem with Halifax that required several phone calls to sort out, I think I'll pass.

janusdesign

judexx said:

VNX said:

I’m sure it will be surpassed but Oxbury with a nice 5.8% one and two year for existing customers.

just for info if youre not an existing customer open any random account with Oxbury and once you’re logged in you can then open an existing customer account to get a better rate than to Joe public.

Was going to go with Oxbury, but just noticed there's no telephone no. to contact them - may not bother some - but having just had a problem with Halifax that required several phone calls to sort out, I think I'll pass.

never had a problem with Oxbury - their chat agents are very helpful and if you ever email them, they are very quick to reply.

BooJewels

I realise it's not chart topping these days, but just spotted that Skipton have seemingly added an 18 month Fixed Rate Bond at 5.25% with a £5k minimum.  Rather more than the 1 year (3.9%) and 2 year (4%) either side of it, albeit they only require a £500 minimum.

ETA the link I forgot.