Fixed Rate Bonds

Mumum

wiseonesomeofthetime said:

I think I understand your dilemma, however, if you cannot access the better rates available now, what makes you think you can next year? 

Sounds like you have some tough choices ahead. 

I have to stay with Skiptons (long story but it has to stay there, although very ftustrating). If inflation and interest rates are predicted to go up (I read to 2.5%) next year then presumably Skiptons would increase their rates in line with all other providers.

refluxer

Mumum said:

wiseonesomeofthetime said:

I think I understand your dilemma, however, if you cannot access the better rates available now, what makes you think you can next year? 

Sounds like you have some tough choices ahead. 

I have to stay with Skiptons (long story but it has to stay there, although very ftustrating). If inflation and interest rates are predicted to go up (I read to 2.5%) next year then presumably Skiptons would increase their rates in line with all other providers.

Not necessarily, unfortunately. Some banks and building societies pass on increases in the base rate fairly quickly and some don't. Of those that do, some may increase the rate on existing accounts and some release a new 'issue' at the higher rate, meaning you need to move your funds into the new account.

Obviously this is only relevant if you stick with easy access accounts.

Mumum

refluxer said:

Mumum said:

wiseonesomeofthetime said:

I think I understand your dilemma, however, if you cannot access the better rates available now, what makes you think you can next year? 

Sounds like you have some tough choices ahead. 

I have to stay with Skiptons (long story but it has to stay there, although very ftustrating). If inflation and interest rates are predicted to go up (I read to 2.5%) next year then presumably Skiptons would increase their rates in line with all other providers.

Not necessarily, unfortunately. Some banks and building societies pass on increases in the base rate fairly quickly and some don't. Of those that do, some may increase the rate on existing accounts and some release a new 'issue' at the higher rate, meaning you need to move your funds into the new account.

Obviously this is only relevant if you stick with easy access accounts.

I'm talking about fixed rate bonds. So what would be the best move in this scenario?

Albermarle

Mumum said:

wiseonesomeofthetime said:

I think I understand your dilemma, however, if you cannot access the better rates available now, what makes you think you can next year? 

Sounds like you have some tough choices ahead. 

I have to stay with Skiptons (long story but it has to stay there, although very ftustrating). If inflation and interest rates are predicted to go up (I read to 2.5%) next year then presumably Skiptons would increase their rates in line with all other providers.

There is not a direct link between the Bof E base rate and the interest rates offered by banks and building societies, who are free to set their own rates.

Bigwheels1111

Just a simple question, why cant you access other accounts.

No smart phone or Ipad ?.

No ID, Passport or Driving Licence.

refluxer

Bigwheels1111 said:

Just a simple question, why cant you access other accounts.

No smart phone or Ipad ?.

No ID, Passport or Driving Licence.

IIRC, the money is being held in trust for a child and the other trustees have limited the choice to the Skipton BS only.

refluxer

Mumum said:

I'm talking about fixed rate bonds. So what would be the best move in this scenario?

It's a tough call but there is another BoE meeting on 16th June, so you might as well hold off until then. What is Skipton's track record for increasing the rates on their fixed rate savings accounts ? Has the rate of a 1 year fix increased since you started looking into this, for example ?

Is there really no way to remove the ridiculous restriction of having to stay with the Skipton ? Trusts should be run for the benefit of the child and restricting funds to a building society who are paying less than half the rates of other banks or building societies will mean that the child will lose out on hundreds - or even thousands - of pounds, depending on the amount we're talking about and the age of the child.

Sea_Shell

Have the trustees provided you with regular copies of statements for the account(s) the money is currently held in?

Olinda99

the Trustees are not acting in the best interests of the child if they restrict to one institution only, and are thus failing in their duty as trustees.

Sea_Shell

Olinda99 said:

the Trustees are not acting in the best interests of the child if they restrict to one institution only, and are thus failing in their duty as trustees.

From OPs other thread, I understand that it is actually their money held in trust for them, which they eventually want to pass on to their son.

Trustees are friends... although not sure how much transparency their is between them an OP?   Hopefully lots!!