The Top Fixed Interest Savings Discussion Area

Ted_01

Are we expecting fixed interest rates to increase much after the expected BoE base rate increase in November? (Or maybe the expected base rate increase has already been 'priced in' to the current best fixed rates?)

Secondly is anyone now tempted to fix for 2 years? 4.6% for a 2 year fix seems pretty good, but maybe it wont seem so good by the end of this year, I dont know.

Thanks in advance.

alternate

Some of the 4+ rates likely have the next increase priced in to some extent.  If it goes up 0.75-1% though I would expect rates to rise again after the usual couple of weeks lag.

The problem with longer fixes is that predictions are for the rate to keep creeping up before peaking next year, which is why I imagine 1 year fixes are more popular.

Consumerist

Ted_01 said:

Are we expecting fixed interest rates to increase much after the expected BoE base rate increase in November? (Or maybe the expected base rate increase has already been 'priced in' to the current best fixed rates?)

Secondly is anyone now tempted to fix for 2 years? 4.6% for a 2 year fix seems pretty good, but maybe it wont seem so good by the end of this year, I dont know.

Thanks in advance.

I think it is probable that some institutions have already 'priced in' future BoE base rate rises. Since it seems unclear how far and how quickly base rate might rise, the pricing will probably have been cautious.

Generally, you can probably expect a cat-and-mouse approach to savings rates between the institutions in much the same way as we have seen recently.

Trying to outguess the market is a bit of a mug's game. You pays your money and takes your choice.

Thumbs_Up

Ted_01 said:

Secondly is anyone now tempted to fix for 2 years? 4.6% for a 2 year fix seems pretty good, but maybe it wont seem so good by the end of this year, I dont know.

Thanks in advance.

It’s the BoE mandate to get inflation down asap ..Reconsider a 5 year fix and load it up.

Consumerist

Thumbs_Up said:

It’s the BoE mandate to get inflation down asap ..Reconsider a 5 year fix and load it up.

However, the means by which they are currently attempting it is to increase base rate. . . which may or may not lead to higher savings rates.

Expotter

Charter Savings Bank 1 year fixed bond at 4.31%  no longer available.

TomDolan

Expotter said:

Charter Savings Bank 1 year fixed bond at 4.31%  no longer available.

Replaced with 18month fixed

fizio

Surely the best thing to do at this point is to sit tight for a few weeks until BoE does the increase - then see how the market looks and make a decision - at least that’s my plan 

biscan25

fizio said:

Surely the best thing to do at this point is to sit tight for a few weeks until BoE does the increase - then see how the market looks and make a decision - at least that’s my plan 

The next piece of market data to look out for is the inflation release next Wednesday. This will give an ideal of the scale of the probable BoE release.

alternate

Rate chasers, like most of us, should likely hold.  However, some people just want to fix and forget it.  I know my parents would if I didn't offer to do it for them   At least if you are fixing now you are getting a good rate, even if it is not the optimum rate.