The Top Fixed Interest Savings Discussion Area

jimexbox

billy2shots said:

jimexbox said:

billy2shots said:

Daliah said:

billy2shots said:

I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

what would be your trigger rate?

2.5% with full freedom to jump at a moment's notice depending on other products and stock market performance. 

Took me 5 minutes to open a zopa account and a few days to move money out of Chase. For hundreds in extra interest. 

0.75 better than my chase but 90 day restriction on moving it. 

I don't plan on holding for a year in a these type of accounts, more like 1 month. Circa £60j going in means £37 difference in interest before tax on shavings (over £1000 interest). 

That's why it's quite a balancing act for me at the moment, not so straight forward. 

Zopa have been good at increasing rates, I'd expect their instant access to be 2.1/2.15% soon. With their 31 day notice at 2.30/2.35%.

I like chase, excellent foreign travel card and 1% cashback. As to savings, way behind now. I'm fortunate that I can use my partners starting saving rate, so zero tax. 

2010

Krakkkers said:

Some reports saying 1% rise being touted for November and possibly an emergency rise this week?

Well if you believe the chancellor that inflation will dip by 5%, thanks to his energy intervention package, and the BoE doesn`t meet until Nov, Bailey will be dithering about even a 0.5% rise, let alone anything this week.

Daliah

billy2shots said:

Daliah said:

billy2shots said:

I have a large sum sat at 1.5% easy access (not changing for 0.3  in the hope of a good jump soon). 

what would be your trigger rate?

2.5% with full freedom to jump at a moment's notice depending on other products and stock market performance. 

2.5% instant access sounds somewhat greedy just now, and you are losing out on 2.1% instant access which you could have had since Sept 1 (up from 2.0% which was available from August 2). Each to their own though.

jimexbox

2010 said:

Krakkkers said:

Some reports saying 1% rise being touted for November and possibly an emergency rise this week?

Well if you believe the chancellor that inflation will dip by 5%, thanks to his energy intervention package, and the BoE doesn`t meet until Nov, Bailey will be dithering about even a 0.5% rise, let alone anything this week.

That was until Friday's tax cuts, widely believed this will add to inflationary pressure. Not to mention the subsequent pressure on the pound.

So inflation may last longer, requiring more rises and to possibly protect the pound. 

vickyholly

Morning, Excuse my ignorance, Why are people waiting for 1 year fixes at 4% and not going for the 3 yr fix at 4%? is it just because they need the cash in a years time? 

RG2015

vickyholly said:

Morning, Excuse my ignorance, Why are people waiting for 1 year fixes at 4% and not going for the 3 yr fix at 4%? is it just because they need the cash in a years time? 

Atom have a 2 year fix at 4.00% with a minimum of £50.

SmartSave does have 4.01% but you would need at least £10k.

In any case there should be many 1 year fixes well above 4% in a couple of weeks making a 2 year 4% look very sorry for a long time.

vickyholly

RG2015 said:

vickyholly said:

Morning, Excuse my ignorance, Why are people waiting for 1 year fixes at 4% and not going for the 3 yr fix at 4%? is it just because they need the cash in a years time? 

Atom have a 2 year fix at 4.00% with a minimum of £50.

SmartSave does have 4.01% but you would need at least £10k.

In any case there should be many 1 year fixes well above 4% in a couple of weeks making a 2 year 4% look very sorry for a long time.

Hi, Im just trying to understand why people prefer a 1 year fix to a longer fix?

Notepad_Phil

vickyholly said:

RG2015 said:

vickyholly said:

Morning, Excuse my ignorance, Why are people waiting for 1 year fixes at 4% and not going for the 3 yr fix at 4%? is it just because they need the cash in a years time? 

Atom have a 2 year fix at 4.00% with a minimum of £50.

SmartSave does have 4.01% but you would need at least £10k.

In any case there should be many 1 year fixes well above 4% in a couple of weeks making a 2 year 4% look very sorry for a long time.

Hi, Im just trying to understand why people prefer a 1 year fix to a longer fix?

Usually because they either need or potentially need the money in a year or because they think that interest rates are going to increase - I think the latter is the main reason why many people are thinking of keeping to a 1 year fix at the moment.

Desk

Notepad_Phil said:

vickyholly said:

RG2015 said:

vickyholly said:

Morning, Excuse my ignorance, Why are people waiting for 1 year fixes at 4% and not going for the 3 yr fix at 4%? is it just because they need the cash in a years time? 

Atom have a 2 year fix at 4.00% with a minimum of £50.

SmartSave does have 4.01% but you would need at least £10k.

In any case there should be many 1 year fixes well above 4% in a couple of weeks making a 2 year 4% look very sorry for a long time.

Hi, Im just trying to understand why people prefer a 1 year fix to a longer fix?

Usually because they either need or potentially need the money in a year or because they think that interest rates are going to increase - I think the latter is the main reason why many people are thinking of keeping to a 1 year fix at the moment.

Yeah - the latter is my reason for being hesitant for locking in for too long.

With my current cash savings, I could do very well on %4 to %5 per cent. However, historically UK interest rates averaged %7.15 percent from 1971 to 2022.

And when you look back at the 1970s, 1980s and 1990s, they were peaking at %15 or even higher.

As nice as it might be to lock in %4 for five years, and while there's a chance it might work out the best option now, I'd be feeling pretty sick if inflation continued to spiral and interest rates were into double figures in response over coming years.

Desk

t1redmonkey

I'm just tracking the markets and seeing what experts are predicting on future interest rates, there's no point locking in to anything (in my opinion) when the forecasts are just for non stop rate rises at least for the next 5-6 months.