The Top Fixed Interest Savings Discussion Area

kaMelo

StayinAlive said:

TomDolan said:

Atom new fixed saver rates
6 months 3.2%
1yr 4.25%
2yr 4.6%

I only opened a 1yr yesterday @ 4.11% but they won't change to the new rate. Also they say they do not operate the 14 day cooling off period so I can't cancel. Caveat emptor.

If you haven't already paid money in then don't. Open a new improved rate account and fund that, the old unfunded lower rate account will close automatically.

StayinAlive

kaMelo said:

If you haven't already paid money in then don't. Open a new improved rate account and fund that, the old unfunded lower rate account will close automatically.

Already funded. That's one of the "benefits" of Atom. The short time it takes to open and fund an account. I shall know better next time.

Thumbs_Up

StayinAlive said:

TomDolan said:

Atom new fixed saver rates
6 months 3.2%
1yr 4.25%
2yr 4.6%

I only opened a 1yr yesterday @ 4.11% but they won't change to the new rate. Also they say they do not operate the 14 day cooling off period so I can't cancel. Caveat emptor.

Console yourself, your not the only one. Some were jumping in feet first at 3.5% a month ago.

Krakkkers

Atom now offering 5% for 5 years.

alternate

Thumbs_Up said:

StayinAlive said:

TomDolan said:

Atom new fixed saver rates
6 months 3.2%
1yr 4.25%
2yr 4.6%

I only opened a 1yr yesterday @ 4.11% but they won't change to the new rate. Also they say they do not operate the 14 day cooling off period so I can't cancel. Caveat emptor.

Console yourself, your not the only one. Some were jumping in feet first at 3.5% a month ago.

and they have been earning an increased rate for a month.  Best to invest in increments.

alternate

I like how the banks are all using Price Is Right rules to make sure they top the table, if only briefly.

Contestant 1:  One hundred dollars

Contestant 2: One hundred ... and one dollar!

EthicsGradient

cricidmuslibale said:

ForumUser7 said:

cricidmuslibale said:

ForumUser7 said:

Atom Bank have also released a 3 year at 4.75%, and now a 5 year at 5%!

According to the MoneyFacts article, this is the 'first provider in over 10 years to list a fixed bond at 5% AER'. atom-bank-five-year-fixed-rate

Very interesting (pun intended) that monthly interest (if allowed to compound) pays a little more than annual interest for the 2 year, 3 year and 5 year fixed rate accounts!

Didn't notice that! Any clue why? Perhaps because the rates are so high and the terms are quite long? I currently hold most of my savings in approx 3% easy access (an account I opened when I was under 18) and I had been hoping this rate would increase, but by waiting I'm probably missing out on quite a bit of interest. I think I'm going to start this Fixed Rate Bond Ladder plan I've heard so much about and invest little and often. That said, with FRB rates increasing all the time, I feel like I may be using lots of 14 day cancellation periods...

With the monthly interest rate, the percentage offered is the closest possible rate (to 2 decimal places) that would enable the same lump sum e.g. £1000 to earn the same amount of interest (if the monthly interest is left in the account to compound) as it would with annual interest compounding each year. Thus if the monthly interest for the 5 year fixed account was only 4.88%, for example, the final amount in the account would be not just lower than the final amount for annual interest but also further away from the annual amount than the quoted figure slightly higher than this annual amount that 4.89% monthly interest generates!

I think using a Fixed Rate Bond Ladder plan is a very good idea at the moment, until interest rates start to plateau at the top of the interest rate hill that’s presently being ascended.

The difference - up to 10p - is roughly one day's interest. It could be that, in February 2024, the leap day throws off the idea of "daily interest is that which, compounded over 365 days, will produce the yearly AER", and those taking monthly interest benefit. 

biscan25

alternate said:

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.

This changed quickly today. 1 year, 2 year swap rates have fallen by more than 5 year. (-0.3%,-0.3%,-0.1%).
Keep opening (but not funding) these accounts people, I feel the top is very close (or already reached??)

ForumUser7

biscan25 said:

alternate said:

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.

This changed quickly today. 1 year, 2 year swap rates have fallen by more than 5 year. (-0.3%,-0.3%,-0.1%).
Keep opening (but not funding) these accounts people, I feel the top is very close (or already reached??)

So you think 4.4% is pretty much the maximum a one year bond will go, even if the BOE increases rates even further? It feels unlikely, but idk much about historical rates so you may well be correct. I guess the markets predicting BOE base rate rises does not mean that banks will 100% increase their rates too - perhaps a base rate tracker is a good idea

Who_invited_her

Can someone please explain the fixed rate ladder method? Is this to open a 1,2,3,4 and 5 year fixed rate product all at the same time then another 5 year fix every year that one of the initial products mature? Or is it to split your funds between several 1 year fixes staggered a month or more between each product to even out the risk of waiting for a higher rate versus earning interest now? Hope that makes sense