The Top Fixed Interest Savings Discussion Area

Pompeydave1967

Atom surprisingly have raised some of the longer term fixed rates today…nice to see

masonic

happybagger said:

masonic said:
 It would certainly be interesting to see a provider bring out a 1 year fixed ISA paying 5.16% to compete with the best conventional fix today, but have a penalty equivalent to 20 years interest if closed or transferred before the end date (essentially wiping out the whole of the capital).

Would the Consumer Protection from Unfair Trading Regs 2008 not extend to financial providers?

Financial providers are not exempt from that legislation as far as I'm aware, but it is arguable whether it would be an offence under the legislation to make a punitive interest penalty for breaking the term if clearly stated up front. The average consumer taking out such a product intends to hold to term, and does so. Savers can already get back less than they deposited when breaking an ISA fix early. So where is the line drawn? What of non-ISA accounts where customers must agree to lock away for the full term, with no option to access, even in cases of financial hardship?

All idle speculation of course as I do not expect a provider to test the limits. They would be more vulnerable to a FOS complaint than legislation. Just as I suspect some savers have complained their way out of conventional fixes where the terms did not permit access in their circumstances.

badger09

RosieRooBear said:

Skipton BS have just launched a two year bond that tracks the BOE rate

2 Year Base Rate Tracker Bond Issue 1

5.25%gross pa/AER variable 
(Annual Interest)

Ready to apply?

This account may be right for you if you:

• are happy with a variable rate that will go up or down in line with changes to the Bank of England Base Rate for 2 years
• have a lump sum of at least £500 to deposit and you don't want to continue to pay in after 06/03/24
• don't need access to your savings during the fixed term
• are aged 16 or over

This is a very odd one. I tried to find it on Skipton website (without following the link) but it doesn’t fit into any of their savings categories. It’s not an easy access, fixed rate, or notice account, so I drew a blank. 

I’m struggling to see the appeal TBH. 2 year lock in with variable rate. Think I’ll pass. 

ColdIron

It's there under the Savings dropdown or Compare All Rates

I think it's OK but I prefer the Base Rate Tracker Issue 5 at BoE - 0.19% (NLA) simply because it's easy access

RosieRooBear

@badger09 @coldiron, I agree it is an odd one & I don’t see the appeal either as rates are more likely to drop. Now if it had been when rates were increasing it may have been worth having. I’ve also got the Skipton Base Rate Tracker (although I’ve only got £1 in it atm as still using Santander 5.2%) so will stick to that too.

badger09

ColdIron said:

It's there under the Savings dropdown or Compare All Rates

I think it's OK but I prefer the Base Rate Tracker Issue 5 at BoE - 0.19% (NLA) simply because it's easy access

Thanks. I missed iss 5 but have BoE-0.9% with small balance. The combination of variable rate but fixed term makes it unappealing to me. 

janusd

badger09 said:

RosieRooBear said:

Skipton BS have just launched a two year bond that tracks the BOE rate

2 Year Base Rate Tracker Bond Issue 1

5.25%gross pa/AER variable 
(Annual Interest)

Ready to apply?

This account may be right for you if you:

• are happy with a variable rate that will go up or down in line with changes to the Bank of England Base Rate for 2 years
• have a lump sum of at least £500 to deposit and you don't want to continue to pay in after 06/03/24
• don't need access to your savings during the fixed term
• are aged 16 or over

This is a very odd one. I tried to find it on Skipton website (without following the link) but it doesn’t fit into any of their savings categories. It’s not an easy access, fixed rate, or notice account, so I drew a blank. 

I’m struggling to see the appeal TBH. 2 year lock in with variable rate. Think I’ll pass. 

I had the same thought - if you want to fix, you fix at the highest rate you can... if you want a variable rate that tracks the base rate exactly and don't need immediate access, then get the United Trust 180-Day tracker which would at least allow you 6-month notice to access to the money.

masonic

A fixed term tracking inflation rather than interest rates would have been a more attractive offering.

ScoobyZ

RosieRooBear said:

Skipton BS have just launched a two year bond that tracks the BOE rate

2 Year Base Rate Tracker Bond Issue 1

5.25%gross pa/AER variable 
(Annual Interest)

Ready to apply?

This account may be right for you if you:

• are happy with a variable rate that will go up or down in line with changes to the Bank of England Base Rate for 2 years
• have a lump sum of at least £500 to deposit and you don't want to continue to pay in after 06/03/24
• don't need access to your savings during the fixed term
• are aged 16 or over

This is a variable rate, why is it in a Top fixed rate savings thread?

refluxer

ScoobyZ said:

RosieRooBear said:

Skipton BS have just launched a two year bond that tracks the BOE rate

2 Year Base Rate Tracker Bond Issue 1

5.25%gross pa/AER variable 
(Annual Interest)

Ready to apply?

This account may be right for you if you:

• are happy with a variable rate that will go up or down in line with changes to the Bank of England Base Rate for 2 years
• have a lump sum of at least £500 to deposit and you don't want to continue to pay in after 06/03/24
• don't need access to your savings during the fixed term
• are aged 16 or over

This is a variable rate, why is it in a Top fixed rate savings thread?

Because, as it has a fixed term and money isn't accessible, it's closer to a traditional fixed rate account in nature than any other type of account, I guess.