The Top Fixed Interest Savings Discussion Area

dgpur

soulsaver said:

dgpur said:

Unable to access the 3.90% Investec account (no photo ID, I went instead with the new Oxbury Issue 15 3.65% 1 year bond. I’d just opened it and funded it, when the home page refreshed to show an Issue 16 - 3.91% already available. Do 1 year fixed bonds have any automatic cooling off period, because obviously I would like to switch?

Did the the terms say there was a cooling off period? Phone them and ask if they can transfer it to the other fix if it is for the same length?

I gave that a try, but no go. Ah well. I have a policy of investing in £5000 chunks, one year at a time, and reinvesting when each one ends. Today was when the latest chunk came up and 3.65% was the best deal I could see. Not the end of the world, it’s still a step up from the last time. Just a bit annoyed at the new new rate appearing literally as I signed up to the earlier new rate.

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People need to keep their nerve, if, and I mean if the pound drops even lower, we will have a emergency interest rate rise. It could be a early Christmas present for us eager savers! Keep the faith!

jak22

Interest rates have been rising all year and will continue to rise even without these hypotheticals. If you rather make just a single investment at the highest possible rate and prefer a strategy of doing nothing then hang on - but in several months time it might be equally tempting just to hang on again. As long as there is a reasonable gap between variables (now 2 - 2.5%) and 1 yr fixes (now 3.5 - 4%) then as the variable needs to catch up and then overtake by that amount to work out better over the year then putting in a smaller amounts every few months or so could still give more income. 

2010

Whenever you fix, now or in a couple of months, I doubt you`ll ever fix at the peak.
Certainly wouldn`t fix for more than a year.
When the year is up, where will rates be then?
Holding on too long now could trip you up in a years time.

bristolleedsfan

https://news.sky.com/story/significant-monetary-policy-response-to-come-bank-of-england-chief-economist-says-12706354

Breaking

'Significant' interest rate rise to come, Bank of England chief economist suggests

jak22

The headline says "'Significant' interest rate rise to come" but scroll down and the actual quote was "this will require a significant monetary policy response" which is not exactly the same thing.

Zaul22

Also a huge increase in the BoE rate might not have much of an effect on savings rates if every bank knows it was only done to save the £. 

NannaH

I’m torn between being pleased rates are rising quickly and horrified because my Daughter can’t lock in another fix on her mortgage until late October!  At the moment Nationwide are still offering a 10 year fix at 3.99% but for how much longer? 

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jak22 said:

 If you rather make just a single investment at the highest possible rate and prefer a strategy of doing nothing then hang on - but in several months time it might be equally tempting just to hang on again.

This is a fair point. I was on the lookout for a large screen tv, but being clever I thought I would wait until the end-of-year sales. But at the start of the new year tv companies bring out new models with better speck.

So I didn’t buy the tv at a reduced price because I wanted the all singing all dancing new speck tv. But I didn’t want to pay the full price, so yes I would wait until the sales....and er, rinse and repeat.

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2010 said:

Certainly wouldn`t fix for more than a year.
When the year is up, where will rates be then?

The thing is people like me would be looking into a five year fix. It’s the timing though. The BoE have promised to get inflation back down to 2% asap.

So since we are talking hypotheticals, say I’m fixed at 5% for five years, I will be smug with years 3,4,5 at 5% and maybe you will be on 1.5% on a variable rate.