The Top Fixed Interest Savings Discussion Area

janusdesign

alternate said:

Cahoot still exist?  I have not heard that brand in ages, I thought Santander had folded it in.

they just stopped accepting new customers for their current account many years ago... I assumed at some point, Santander would kill the brand and move everyone to Santander brand, but seems they are now using it for fixed-rate bonds.

Thumbs_Up

Ah, this is where I shouldn’t get too carried away. I may or may not buy a house* next year, so I need to keep my feet grounded and not tie up money I might need to spend.

*A nice 25-35% drop will do me. To amend a old Labour slogan this could be a positive double whammy for me.   

t1redmonkey

Yes they offer some slightly different products, but worth keeping in mind they share the £85k FCSC compensation limit with Santander I believe.

janusdesign

t1redmonkey said:

Yes they offer some slightly different products, but worth keeping in mind they share the £85k FCSC compensation limit with Santander I believe.

that's correct (FSCS btw!).

bristolleedsfan

janusdesign said:

I logged into Charter Savings this morning to find that it is now showing the correct monthly rate of 4.23% for my 1-yr fix - no reply to my secure message yet, but that will no doubt come today or tomorrow.

Not changed on mine, no reply to S.M from 8th ....

Current Interest Rate (Gross): 3.49%
Maturity Date: 06/10/2023

Rheumatoid

t1redmonkey said:

Cahoot 3 year fix 4.8% - who will be the first to hit the magical 5%?

Santander ISA 2 year at 4.2 effectively over 5% if you would be taxed on  it.

mongoose2009

the terminal rate is gonna be a hard pick

and the timing will be hard so best not be greedy

when the recession hits the BOE will be back to zero in a day

t1redmonkey

mongoose2009 said:

the terminal rate is gonna be a hard pick

and the timing will be hard so best not be greedy

when the recession hits the BOE will be back to zero in a day

They're not going to reduce them down to zero.  Recent recessions they've reduced the interest rates because there hasn't been high inflation in the economy so they had the scope to do that.  This time they do not have that luxury.

Desk

t1redmonkey said:

mongoose2009 said:

the terminal rate is gonna be a hard pick

and the timing will be hard so best not be greedy

when the recession hits the BOE will be back to zero in a day

They're not going to reduce them down to zero.  Recent recessions they've reduced the interest rates because there hasn't been high inflation in the economy so they had the scope to do that.  This time they do not have that luxury.

Still, it's going to be hard to call when they're going to top out....

Go too early, and you sit and watch while interest rates continue to climb, like they did in the 70s well into double figures, and you lose out.

Go too late, and you kick yourself for being so greedy.

If the Chancellor does u-turn on planned tax cuts I wonder what that will do for base rate projections, or is a marked increase now a sure thing no matter what?

On a separate point, you'll still have to stay below the £85,000 threshold for FSCS cover, so is it best to calculate what will keep you under if interest is compounded into the account over the years, or is it best to put in a whole £85,000 and have it paid out to an external account? I suppose with the latter you're getting the full benefit of the interest rate, but you might need to open another account for the remaining sums.

Desk

alternate

2 year. 3 year and 5 year have a pretty small spread,  Seems to be the banks think rates will continue to rise in the short term and then stay high medium term until inflation is under control.

If they thought they would continue to rise then longer fixes would be offered at a higher rate.  If they thought rates would quickly go back down I doubt they would offer 5 years bonds at all.