The Top Fixed Interest Savings Discussion Area

ScoobyZ

refluxer said:

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.

But the forum is:

The Top Fixed Interest Savings Discussion Area

Interest not term. Interest are likely to drop so will the rate not not fixed interest.

masonic

ScoobyZ said:

refluxer said:

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.

But the forum is:

The Top Fixed Interest Savings Discussion Area

Interest not term. Interest are likely to drop so will the rate not not fixed interest.

The interest rate is fixed to an external metric. The provider has no power to vary it having locked it to this. Index linked debt is still referred to as fixed interest, but whether or not you agree, there's a certain irony in dragging the thread off topic to take someone to task for a discussion you consider off topic, which would otherwise not have continued.

RosieRooBear

Thank you @masonic, I only posted it as I thought it may be of interest to people, and to me this seemed the most relevant place to post it 😊

masonic

RosieRooBear said:

Thank you @masonic, I only posted it as I thought it may be of interest to people, and to me this seemed the most relevant place to post it 😊

It's been just over 2 years since the OP started this thread with the following commentary:

Molehusband said:

I'm interested in people's thoughts and recommendations for the best fixed interest accounts.  With BOE interests rates recently starting to increase we have to consider the desirability of long term fixed interest savings. Since withdrawals are usually not permitted before the end of the fixed period, such general interest rate rises may make us feel less inclined to go for a long term Fix. 
What are your thoughts?

Clearly back in Feb 2022, taking out a long term fix was a big risk precisely because base rate hikes were expected, and so a saver would have an expectation of a greater return through taking out a series of shorter fixes or jumping between access accounts. Had there been a fixed term account tracking base rate, then such an account would have been the solution to the OP's dilemma. However, no such product existed at that time to the best of my knowledge. The cynic in me thinks the appearance of one or two of these base rate tracking products at a point where interest rates are expected to fall is quite telling, but if set at an appropriate level, despite interest rate predictions, such a product could still solve the problem of long term fixed interest savings accounts being a risk. It's worth remembering that conventional static fixed term accounts have already got reduced interest rates priced in. If accounts tracking base rate are still around in a year or two when the trajectory of base rate is less certain, they may offer something of value.

ScoobyZ

masonic said:

ScoobyZ said:

refluxer said:

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.

But the forum is:

The Top Fixed Interest Savings Discussion Area

Interest not term. Interest are likely to drop so will the rate not not fixed interest.

The interest rate is fixed to an external metric. The provider has no power to vary it having locked it to this. Index linked debt is still referred to as fixed interest, but whether or not you agree, there's a certain irony in dragging the thread off topic to take someone to task for a discussion you consider off topic, which would otherwise not have continued.

It’s not fixed to an external metric (correction not matrix), it’s linked to it and that link isn’t fixed.

It’s a tracker savings rate. It’s like saying a variable tracker mortgage is fixed as it’s linked to the BOE rate. It may confuse savers looking for a fixed if people start putting variable rates in the thread and then try and defend this incorrect information.

It even says in the description variable. It’s even more ironic that you are dragging it on with this incorrect information.

masonic

ScoobyZ said:

masonic said:

ScoobyZ said:

refluxer said:

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.

But the forum is:

The Top Fixed Interest Savings Discussion Area

Interest not term. Interest are likely to drop so will the rate not not fixed interest.

The interest rate is fixed to an external metric. The provider has no power to vary it having locked it to this. Index linked debt is still referred to as fixed interest, but whether or not you agree, there's a certain irony in dragging the thread off topic to take someone to task for a discussion you consider off topic, which would otherwise not have continued.

It’s not fixed to an external matrix, it’s linked to it and that variable isn’t fixed.

It’s a tracker savings rate. It’s like saying a variable tracker mortgage is fixed as it’s linked to the BOE rate. It may confuse savers looking for a fixed if people start putting variable rates in the thread and then try and defend this incorrect information.
It even says in the description variable. It’s even more ironic that you are dragging it on with this incorrect information.

I don't know what you mean about a matrix, but the account in question can quite reasonably be considered fixed to base rate. By analogy a caravan might be fixed to a car such that it travels the same distance as the vehicle that is towing it.

It says the rate is variable because it is variable, I haven't seen anyone say it isn't variable. The interest is variable and fixed to base rate for 2 years. Some products don't fit well into pigeon holes. I have faith in the intelligence of the forumites reading this thread to understand what this product is and figure out whether it is for them or not. The OP specifically referred to base rate and the issues around taking out a fix when you do not know if interest rates will be higher at some point during the fixed term. This account does to some extent address this concern, so I don't think it was wrong for someone to mention it. This is also the audience who would most likely consider a good offering in this space.

Several posters have already made insightful comments about features they don't like about this account, and how it might have been better. Eight posters have found the mention useful enough to thank the person who shared it. Frankly I see no reason for the hostility towards a poster who was just sharing some information in good faith that she (correctly) thought some might find of interest.

StayinAlive

Atom up again to 5.25% for 1 year fix

jimexbox

StayinAlive said:

Atom up again to 5.25% for 1 year fix

Nice one, looking for a new one year fix start of the new financial year. 

MikeJXE

StayinAlive said:

Atom up again to 5.25% for 1 year fix

Thanks for that 

Another £10,000 put away for a year 

Better than where it was in Coventry limited access and my last withdrawal 

CuparLad

StayinAlive said:

Atom up again to 5.25% for 1 year fix

Now pipped by Smart Save @ 5.26% for 1 Year.