The Top Fixed Interest Savings Discussion Area

pecunianonolet

auser99 said:

pecunianonolet said:

Almost no spread anymore between easy access and a fix means that banks expect rates to fall significantly in the short run.

Could be interesting how this plays out closer to an election and how parties will try to capitalise with it. 

I was surprised the easy access Shawbrook account at 5% is better than all their fixed term bonds.
 Their easy access ISA at 4.7% is now a better rate than all their fixed versions too.
Madness.

The question is for how long this will be the case. The ISA is on sale since 3rd Nov so probably a matter of time until the chainsaw is pulled out to cut the rates across all fixes. A clear sign that the fixes are so low now is that banks expect BOE cuts, perhaps as early as Q1 after the inflation figures today. 

In general, I noticed Friday is usually a day for NLA and cuts, let's hope things are kept on sale over Christmas.

cricidmuslibale

In pecunianonolet’s post above it says 'A clear sign that the fixes are so low now is that banks expect BOE cuts, perhaps as early as Q1 after the inflation figures today.' I'm not sure tbh that the first BOE interest rate cut will come as early as Q1 because it appears to me that the CPI figure of 3.9% released today (20th December) is a little bit of an outlier, with it being not only a little lower than expected by most economic commentators but also noticeably lower than the equivalent CPIH figure at 4.2% and much lower than the latest RPI figure also released today which is 5.3%!

Please see Inflation and price indices - Office for National Statistics (ons.gov.uk) for further details.

My personal inflation figure is very similar to the latest RPI measurement and I'm very grateful indeed at the moment that, until the end of April 2024, I still have a few NS&I Index Linked Certificates which are linked to the annual change in the RPI rather than the CPI! I suspect that the CPI figures that will be released in January and February will show at least a small rise from this latest figure of 3.9%, which I think will be viewed within the next few months as somewhat out of line in comparison to the CPI measurements that both precede it and follow it!

In summary, I still expect inflation in general terms to recede over the period of c. the next couple of years or so but not nearly as rapidly as this month’s CPI figure would appear to indicate!

auser99

pecunianonolet said:

auser99 said:

pecunianonolet said:

Almost no spread anymore between easy access and a fix means that banks expect rates to fall significantly in the short run.

Could be interesting how this plays out closer to an election and how parties will try to capitalise with it. 

I was surprised the easy access Shawbrook account at 5% is better than all their fixed term bonds.
 Their easy access ISA at 4.7% is now a better rate than all their fixed versions too.
Madness.

The question is for how long this will be the case. The ISA is on sale since 3rd Nov so probably a matter of time until the chainsaw is pulled out to cut the rates across all fixes. A clear sign that the fixes are so low now is that banks expect BOE cuts, perhaps as early as Q1 after the inflation figures today. 

In general, I noticed Friday is usually a day for NLA and cuts, let's hope things are kept on sale over Christmas.

Yes. I was for reasons of "neatness" looking to put a little bit into a Metro bond on Jan 1st, but having seen the carnage elsewhere, and how they've already gone from 5.91% to 5.8% to 5.66% currently, it seems foolish to even think about waiting now.

pecunianonolet

cricidmuslibale said:

@pecunianonolet In your post above you say 'A clear sign that the fixes are so low now is that banks expect BOE cuts, perhaps as early as Q1 after the inflation figures today.' I'm not sure tbh that the first BOE interest rate cut will come as early as Q1 because it appears to me that the CPI figure of 3.9% released today (20th December) is a little bit of an outlier, with it being not only lower than expected by most economic commentators but also significantly lower than the equivalent CPIH figure at 4.2% and much lower than the latest RPI figure also released today which is 5.3%!

Please see Inflation and price indices - Office for National Statistics (ons.gov.uk) for further details.

My personal inflation figure is very similar to the latest RPI measurement and I'm very grateful indeed at the moment that, until the end of April 2024, I still have a few NS&I Index Linked Certificates which are linked to the annual change in the RPI rather than the CPI! I suspect that the CPI figures that will be released in January and February will show at least a small rise from this latest figure of 3.9%, which I think will be viewed within the next few months as somewhat out of line in comparison to the CPI measurements that both precede it and follow it!

I think it will fall further from here as the BOE actions always show through on the market with a lag. I would not be surprised if the BOE will make a first move in March by reducing 0.25% to give the economy in spring a slight push.

The price level will stay high but for example a lot of people currently not impacted too much by rates need remortgaging and will get into that territory of needing to secure a deal, so a slight incentive could be given. The UK economy relies a lot on the property market, feeding into GDP. 

Also, with growing the economy being a hot topic by all parties a first, even if small reduction, will encourage investment.

Markets work a lot by messaging, indication and expectations and a first cut would send an initial and strong signal and stimulus providing a positive outlook.

Also, looking at stock markets surging from one high to another e.g. DAX in germany signals that rate reductions are already priced in making shares attractive again.

However, many variables are at play, how does the ECB and FED act, what about the various wars and conflicts, will the OPEC reduce daily output, is the China property bubble going to burst, etc. Last but not least, 2024 is going to be a record year for elections globally, which could reshuffle the global landscape quite a bit, making all the above obsolete.  

https://www.theguardian.com/world/2023/dec/17/democracys-super-bowl-40-elections-that-will-shape-global-politics-in-2024

Last but not least, banks have enough capital at hand and their problem could very quickly be that they can't lend out enough making deposits tied to fixes very expensive in the long run so they will try to funnel funds into flexible accounts where they can cut rates at short notice.

My crystal ball is not superior to those of others here so all of the above, if read in a few weeks, might be utter nonsense :-)

Rumple66

Zenith Bank has featured in MSE's best savings tables for a year or so.  Like many others here, I was put off by the inability to track my savings or have any contact except by phone.  Unfortunately, they already have debited the considerable deposit sum from my current account before formally 'accepting' my application.  This , alongside the truly dire ratings on Trust Pilot makes me extremely nervous.  MSE reports customer service ratings for current accounts. Might they do the same for those savings accounts/institutions that make a frequent appearance in their 'best rates' lists?

Middle_of_the_Road

Metro fixed term savings for new applications suspended until new year.

Fixed Term Savings Account | Savings | Metro Bank (metrobankonline.co.uk)

Middle_of_the_Road

Not listed on the main MSE Savings page-
Equal to Investec and Ikano Bank 
HEBS 1 Year fixed rate Online bond 5.3%
Savings - Hanley Economic Building Society (thehanley.co.uk)

Contador38

Marcus 1 Y Fixed @ 5,25% no longer available.

If one has opened such account recently, there is a 14 days window to add more funds.

murmeltier

Contador38 said:

Marcus 1 Y Fixed @ 5,25% no longer available.

If one has opened such account recently, there is a 14 days window to add more funds.

Still available for existing customers, managed to open one when logged in just now.

Sea_Shell

murmeltier said:

Contador38 said:

Marcus 1 Y Fixed @ 5,25% no longer available.

If one has opened such account recently, there is a 14 days window to add more funds.

Still available for existing customers, managed to open one when logged in just now.

Me too.   I saw this and jumped on it quick, as I'd missed noticing it earlier.  

There is no mention of a minimum amount (just a max) so can I assume it's from £1.    Planning on putting about £2k in.