How much longer to wait ??

steveksullivan

So I've had a couple of lots of matured funds sitting in instant access for several weeks now waiting for this announcement.

Has anybody monitored  banks 'responses' to rate increases in the past and suggest how much longer I should wait before finding a new home for the funds?  I have noticed even in the last couple of days some small rate increases  - I never know whether these are very late responses to the last increase or early responses to the next .....

I know this is ultimately my choice but interested in observations ..... and which organisations typically move fastest and slowest?

(BTW I also realise that rate changes are also influenced by the organisations requirement for funds and not just BoE base rate changes....)

Oasis1

I think this is a great question - wondering this myself. How long to wait after an announcement until making a decision...

Though I'm sure all banks would be able to predict that this would happen, which is why we saw some rate rises ahead of the announcement perhaps?

Bigwheels1111

A rate rise comes a day or 2 before the BOE sit.

Then it seems to take about 3 weeks before the rise hit and rates go up.

Thats the way its been for the last 3 months, Ive been looking.

Im stashing my savings in AL ryan easy access @ 1.8%.

Not sure where I can put Septembers money yet.

Im holding on for December an hoping for 4% plus before I fix.

Take a loss now for a win for the next 5 years.

Oasis1

Bigwheels1111 said:

A rate rise comes a day or 2 before the BOE sit.

Then it seems to take about 3 weeks before the rise hit and rates go up.

Thats the way its been for the last 3 months, Ive been looking.

So you reckon wait 3-4 weeks before deciding where to move savings?

Bigwheels1111

Oasis1 said:

Bigwheels1111 said:

A rate rise comes a day or 2 before the BOE sit.

Then it seems to take about 3 weeks before the rise hit and rates go up.

Thats the way its been for the last 3 months, Ive been looking.

So you reckon wait 3-4 weeks before deciding where to move savings?

I would wait, thats just my own personal opinion.

How much are you wanting to lock away and for how long.

 I want long term fixed rate with annual payout, as dont need the cash.

10K plus of interest a year will suit me fine , as I can get up to 15K tax free.

steveksullivan

As the sums are (for me .....) substantial (...in total more than 6 figures.....) each day lost is proving expensive, but obviously the potential gains could be great if the full .5% is passed on...... any more views?

eskbanker

The market doesn't move collectively - some providers apply adjustments in anticipation of base rate changes, others immediately after confirmation, others later on, and some not at all!

Hence this thread:

https://forums.moneysavingexpert.com/discussion/6372574/which-savings-provider-moves-their-rates-quickly-or-at-all-with-the-boe-and-by-the-full-amount

MX5huggy

Oasis1 said:

Bigwheels1111 said:

A rate rise comes a day or 2 before the BOE sit.

Then it seems to take about 3 weeks before the rise hit and rates go up.

Thats the way its been for the last 3 months, Ive been looking.

So you reckon wait 3-4 weeks before deciding where to move savings?

No because then you’re only 2 weeks from the next rate decision. 

What are you wanting to achieve? How much money are looking to put where for how long? If you just want easy access open the best one today and then you just need to decide when you feel getting a better rate is worth it. I’m not moving £1k from 1.5% to 1.71%. 

Albermarle

Bigwheels1111 said:

Oasis1 said:

Bigwheels1111 said:

A rate rise comes a day or 2 before the BOE sit.

Then it seems to take about 3 weeks before the rise hit and rates go up.

Thats the way its been for the last 3 months, Ive been looking.

So you reckon wait 3-4 weeks before deciding where to move savings?

I would wait, thats just my own personal opinion.

How much are you wanting to lock away and for how long.

 I want long term fixed rate with annual payout, as dont need the cash.

10K plus of interest a year will suit me fine , as I can get up to 15K tax free.

£10K of interest must mean some huge amount of cash saving ? all losing up to 10% a year in value ( latest inflation prediction is 13 %) and probably say 5% next year.
OK investments have not done so well this year, but long term they should at least keep pace with inflation.

Oasis1

MX5huggy said:

Oasis1 said:

Bigwheels1111 said:

A rate rise comes a day or 2 before the BOE sit.

Then it seems to take about 3 weeks before the rise hit and rates go up.

Thats the way its been for the last 3 months, Ive been looking.

So you reckon wait 3-4 weeks before deciding where to move savings?

No because then you’re only 2 weeks from the next rate decision. 

What are you wanting to achieve? How much money are looking to put where for how long? If you just want easy access open the best one today and then you just need to decide when you feel getting a better rate is worth it. I’m not moving £1k from 1.5% to 1.71%. 

I'm ready to move £65k. Currently 1.5% but waiting to see if 1.8% Al Rayan will be beaten in the next couple of weeks. Don't want fixed as may buy first property in the next 12 months.

karlie88

Al Rayan has been pretty good at raising rates over the past few months. Same for Virgin Money.

Zopa has been up there along with Atom, but haven't seen a decent increase in the past month or two.

Chase was fast out of the blocks but has stagnated since launch.

Marcus was good in the past but has lagged behind in recent months.

OP, seeing as you've got a 6-figure sum, open all the best easy access accounts and put £85k chunks in them (unless you're covered for the full amount for 6 months). If the account paying the least interest is trumped by 0.2%, I'd move it along. That's what I would do anyway.

I don't think there's any point in waiting around.