The Top Fixed Interest Savings Discussion Area

Alpine_Star

Patr100 said:

LONDON, Sept 9 (Reuters) - The Bank of England on Friday postponed next week's interest rate decision following the death of Queen Elizabeth, it was rescheduling its next announcement on interest rates and other decisions until Sept. 22 from an original date of Sept 15.

So combating soaring inflation will just have to wait then.

Thumbs_Up

Don’t you worry about it, apparently inflation will tumble early next year.

MoneySaver16

I have some funds sitting in premium bonds which are earmarked for mortgage repayment over the coming years. With rates now above that on my mortgage deal I am thinking of locking away funds - but have been kicking it down the road for a couple of months now due to BoE rises!

Is it worth holding out until after 22nd September + a period of time for rates to become available, or do I jump on a one year fix now? I had 3.5% for a one year fix as a rough target so most big names still JUST below this (Virgin at 3.3%)

As a way around the risk can I lock up in multiple accounts so split in to smaller chunks and lock one up each month? Would mitigate rate risk but I am not sure if this is an issue for credit or other reasons. I thought savings accounts didn’t leave a mark.

janusdesign

Patr100 said:

Bank of London and The Middle East 1 year now at 3.40%
(expected rate (sharia account)  - min £1000)
Apparently you open this one online but have to manage by post?
So not great in my opinion. Why at this point in the 21st century
do they have these archaic accounts?

I get the impression that once you reach the full deposit specified on the application then you can't add additional funds - so if you specify £5k, you can't add more than that... the bit that I don't like is "All applications must be made online. You will not be able to view your account online."... !!!!!!? if I had committed to a fix (whether 1 or 7 years), the least i'd expect to be able to see is my account balance!

it looks to be a similar situation with their 2.52% 90-day notice account - you have to manage it via a form on their site... a little too much like amateur hour to me and so, like you, i'll pass.

RG2015

MoneySaver16 said:

I have some funds sitting in premium bonds which are earmarked for mortgage repayment over the coming years. With rates now above that on my mortgage deal I am thinking of locking away funds - but have been kicking it down the road for a couple of months now due to BoE rises!

Is it worth holding out until after 22nd September + a period of time for rates to become available, or do I jump on a one year fix now? I had 3.5% for a one year fix as a rough target so most big names still JUST below this (Virgin at 3.3%)

As a way around the risk can I lock up in multiple accounts so split in to smaller chunks and lock one up each month? Would mitigate rate risk but I am not sure if this is an issue for credit or other reasons. I thought savings accounts didn’t leave a mark.

There are no hard searches when opening a savings account hence no marks on your credit report. There may be an ID check or anti money laundering search (AML), but these would not be seen by any prospective lenders.

As to your 1 month idea, this is exactly when I have been doing. I have fixed accounts maturing every month for the next 12 months. My latest is the Virgin Money 1 year fixed saver at 3.32% which you have mentioned.

It is though somewhat depressing to see the earlier ones at such low rates as 1.35% and 1.25% from 10 or 11 months ago.

Perhaps I will feel the same way about the VM 3.32% eleven months from now when rates are up to 4% or 5% 

Pompeydave1967

Similar here , waiting for better rates but have opened a couple recently with smaller amounts.Atom only gives 7 days to put as much or little in but Shawbrook stays open until not available . That could be weeks or months as another Shawbrook fix of mine stayed open for 6 months .Itchy feet is an understatement and waiting + waiting for rates to increase is time consuming as £££ sitting in easy access.

ColdIron

janusdesign said:

Patr100 said:

Bank of London and The Middle East 1 year now at 3.40%
(expected rate (sharia account)  - min £1000)
Apparently you open this one online but have to manage by post?
So not great in my opinion. Why at this point in the 21st century
do they have these archaic accounts?

the bit that I don't like is "All applications must be made online. You will not be able to view your account online."... !!!!!!? if I had committed to a fix (whether 1 or 7 years), the least i'd expect to be able to see is my account balance!

Hargreaves Lansdown have the 3.40% BLME offer. You can view the (unchanging) account balance for as long as you like

MoneySaver16

RG2015 said:

MoneySaver16 said:

I have some funds sitting in premium bonds which are earmarked for mortgage repayment over the coming years. With rates now above that on my mortgage deal I am thinking of locking away funds - but have been kicking it down the road for a couple of months now due to BoE rises!

Is it worth holding out until after 22nd September + a period of time for rates to become available, or do I jump on a one year fix now? I had 3.5% for a one year fix as a rough target so most big names still JUST below this (Virgin at 3.3%)

As a way around the risk can I lock up in multiple accounts so split in to smaller chunks and lock one up each month? Would mitigate rate risk but I am not sure if this is an issue for credit or other reasons. I thought savings accounts didn’t leave a mark.

There are no hard searches when opening a savings account hence no marks on your credit report. There may be an ID check or anti money laundering search (AML), but these would not be seen by any prospective lenders.

As to your 1 month idea, this is exactly when I have been doing. I have fixed accounts maturing every month for the next 12 months. My latest is the Virgin Money 1 year fixed saver at 3.32% which you have mentioned.

It is though somewhat depressing to see the earlier ones at such low rates as 1.35% and 1.25% from 10 or 11 months ago.

Perhaps I will feel the same way about the VM 3.32% eleven months from now when rates are up to 4% or 5% 

Great minds

How have you found it? Any complaints? I was thinking of splitting it in to 12 pots which sounds like you have done. I think downside would be admin and lack of earnings on the unfixed portion initially but trade off is more likely to capture rising rates and flexibility as its not all tied in to one date.

soulsaver

Thread drift? But maybe of interest...
Fixed Rate ISAs | Santander UK

Santander 1 year 3.0 %fixed ISA  - for comparison equivalent to 3.7% for a BR taxpayer that pays tax on savings interest. 
Plus £50 evoucher for full ISA transfer £10k or above. Note: FULL, no voucher for partial transfer.

Patr100

Charter Savings Bank 1 year : 3.4%
Interest paid monthly or  annual.
min £5000
online only