When will we see this passed onto savers?

Evan3020

looking for a fixed rate bond, 1 or 2 years. Will we see rates rise in the next few days?

steveksullivan

Evan3020 said:

looking for a fixed rate bond, 1 or 2 years. Will we see rates rise in the next few days?

See my post 'how much longer to wait?' about 5 posts down at the moment .....and the helpful responses there ......

cosh25

Newcastle Building Society are passing on the full 0.50% on to all variable savings according to their website.

Ed-1

cosh25 said:

Newcastle Building Society are passing on the full 0.50% on to all variable savings according to their website.

They conveniently and quietly ignored the last 0.25% rise in June though and lumped it into this announcement.

Expotter

This is from today's Mail Online:
James Blower, founder of the Savings Guru said: 'The rate hike means that we will see interest rates on savings continue to increase gently in the coming months.

'It won't mean we suddenly see a 0.5 percentage point increase in best buy rates, as these are already well ahead of the base rate, but we will see fixed rates continue to increase in the coming weeks.' 

Blower says: I don't think we will see easy-access rates breach the 2 per cent barrier over the next few weeks.

'Al Rayan are an outlier at 1.8 per cent with the rest of the best buy market at 1.55 per cent, but I expect that to change by the end of the week and we will quickly see consolidation of best buy easy-access rates around 1.75 to 1.85 per cent and I think we will see a best-buy with a 2 in front of it in late September or early October.'

As for fixed rates, in June we saw these deals breach the 3 per cent barrier. Since then they have continued onwards and upwards.

The top five-year fixed rate deal now pays 3.4 per cent, whilst even the best two-year deal pays 3.12 per cent.'

I don't think long term fixed rates of three years and above will increase too much from here, says Blower. 'I think the year end best buy five year will still be sub 4 per cent - but short term rates will rise.

'But I expect the one-year fixed market to break 3 per cent in the autumn and we may see the best two-year deals reach 3.5 per cent.'

Another opinion, but probably a better informed view than my own.

jimjames

Evan3020 said:

looking for a fixed rate bond, 1 or 2 years. Will we see rates rise in the next few days?

Not fixed but Virgin already paying 1.71% so virtually the same as base rate