The Top Fixed Interest Savings Discussion Area

Desk

I’m debating a one year fix at present, with a few options just below 3.5 per cent.

However, at this point I’m wondering what an increase to the base rate of 0.50 per cent or event 0.75 per cent will do for these fixes.

Surely these one year fixes are not likely to decrease at that point, and are more likely to go up further, however much closer the base rate increase takes us to the projected 4.5 per cent peak next year - and however short lived that peak might be?

Bigwheels1111

Desk said:

I’m debating a one year fix at present, with a few options just below 3.5 per cent.

However, at this point I’m wondering what an increase to the base rate of 0.50 per cent or event 0.75 per cent will do for these fixes.

Surely these one year fixes are not likely to decrease at that point, and are more likely to go up further, however much closer the base rate increase takes us to the projected 4.5 per cent peak next year - and however short lived that peak might be?

I would stash your cash in an easy access or notice account.
Fix in January or February, well that’s what I’m doing.
Base rate could be 2.5% Thursday and 3% in November and even 3.5% in December.
That should give 5% for savings.

jak22

If you just wait for rates to stop rising then you might never get a fix - and you'll be missing out on higher rates from day 1.

What matters is the gap between the better current variables (around 1.8% - 2.0% now) and the fix. If you aim for a gap of say 1.5% then the variable not only has to catch up but overtake by that amount in a year to be better than the fix, Fair enough there's likely a big jump in the next BoE but waiting a couple of weeks is different to putting it off until some time next year.

Its also possible to put in an amount every few months into a new fix as rates rise rather than everything into one fix.

intalex

Atom launched new fixed rates this morning, though left the instant access rate untouched...

Pompeydave1967

intalex said:

Atom launched new fixed rates this morning, though left the instant access rate untouched...

Better late than nothing but will be left behind again when rates increase tomorrow .

Patr100

intalex said:

Atom launched new fixed rates this morning, though left the instant access rate untouched...

Atom 3.45%
mobile app only
Annual or monthly interest
Min £50

alternate

I broadly agree with the philosophy of "dont keep holding out for rate rises as you are missing current returns", but with the next meeting tomorrow I would wait the extra day.

steveksullivan

alternate said:

I broadly agree with the philosophy of "dont keep holding out for rate rises as you are missing current returns", but with the next meeting tomorrow I would wait the extra day.

Except it won't be just one day ..... not many rates increased day one last time and rates have been moving for the whole six weeks since ....  I still dont know which rates rise as a reaction to any rate rises and how much of any forecast rate rise is already priced in ..... i.e. are the rates rising (literally) today 'late', or speculation on what will happen tomorrow?

 I have been sitting on money that matured around the time of the last rate rise and still dont know when to jump !!

I think I'm just going to have to pick a date in about a fortnight and commit to it .....

Interested to know what others are doing though....???

Pompeydave1967

Yes I have invested recently as waiting and waiting stops me from earning at least 3.2 - 3.5% .if I left 50k in easy access for another 3 months I would dread to think how much interest I would have lost . I’ve still got a chunk to go in so prob within the next week or so. 

Frequentlyhere

In my view, rates move on the whim of the firm, the actual rate changing and most importantly the predicted market rates changing.

The sum of that is probably don't bother trying to time it too much and try and make regular deposits.

Above said, does anyone have a pretty graph showing how the best buy rates interact with the forward market rates and the current interest rates? Would be interesting to see