The Top Fixed Interest Savings Discussion Area

biscan25

Money assets are back on the move upwards (yields down). Hope you all managed to act on these fixes, before they were/are withdrawn.

biscan25

Just seen why. BoE to buy government bonds in a huge intervention.

mlc2009

I'm not good with this stuff. Is the government buying bonds essentially QE again? 

Expotter

Newcastle Building Society 1 year fixed rate cash ISA 3.6% (equivalent to 4.5% after 20% tax), 2 year fixed 4.1% (5.125% after 20% tax)

intalex

intalex said:

Zopa have released new fixed rates, although it seems they only pay the monthly interest into the fixed account, not out...

2 days later and they've released new higher rates - again, interest though paid monthly is only paid into the fixed account, hence only accessible at maturity...

biscan25

mlc2009 said:

I'm not good with this stuff. Is the government buying bonds essentially QE again? 

Caveat, I'm trained in macroeconomics but it's not my day job.

Almost but not quite. This is more shuffling deckchairs, as the BoE is selling other assets to purchase the gilts. Shouldn't impact Stirling a great deal, or be inflationary.

coastline

Future mortgages and savings rates are normally linked to bond yields . Today it's clear to see the BOE are in.

United Kingdom Government Bond 10Y - 2022 Data - 1980-2021 Historical - 2023 Forecast (tradingeconomics.com)

biscan25

coastline said:

Future mortgages and savings rates are normally linked to bond yields . Today it's clear to see the BOE are in.

United Kingdom Government Bond 10Y - 2022 Data - 1980-2021 Historical - 2023 Forecast (tradingeconomics.com)

Close, it's swap yields, although gilts are a rather close proxy and live data is available.
All else being equal this will take 0.5% (so far if the market reaction is correct) off fixed rate mortgages and fixed savings,

Expotter

As interesting as this discussion on macroeconomics might be, may I politely remind everyone that the title of this thread is Top Fixed Interest Savings and to try and stay on topic?

NannaH

I posted about mortgages rates to point out that while interest rises are great for us savers,  they are a disaster for young families with high ltv mortgages.