Time for 1 year fix ?

meat_n2_reg

Currently have 80 k in 31 day access Atom account ending tomorrow paying 1.95%
Thinking of putting a 20k in a 1 year saver paying 3•05% , then another 1 year saver when rates go up again to spread 1 year fixes every 3 months , not sure if this is a good idea or best just to wait for another 3 months and then fix the lot , would welcome your thoughts 

Pompeydave1967

I think your initial idea is spot on , I fixed some today with Shawbrook , then in about 3 / 4 weeks time will do another fix , then another and so on.

RG2015

Good idea although mine is monthly not quarterly.

When combined with regular savers I now have between 2.4k and 3.6k maturing almost every month.

The rates keep on increasing.

Coventry regular	30/10/22	2.00%
OakNorth 90 day	17/11/22	2.20%
Nationwide Regular	24/11/22	2.50%
Atom 6 month	09/01/23	2.00%
TSB Regular	21/02/23	2.00%
Santander Regular	06/04/23	2.50%
First Direct regular	30/04/23	3.50%
Ford 1 year	26/05/23	2.15%
Ford 1 year	27/06/23	2.45%
Ford 1 year	25/07/23	2.68%
Ford 1 year	17/08/23	2.95%

Bigwheels1111

Monument Bank 3.2% for 1 year.

meat_n2_reg

Just feel need to start some fixed savings, put a line in the sand as rates are changing so often and then save separate pots as rates hopefully continue increasing

clowning

I bit the bullet and went for a 1 year fixed with Charter at 3.05% yesterday. I moved some funds from a Zopa pot

jak22

Any time is OK for a fix, its just a case of finding one with a reasonable gap over current variable easy access so that as the variable catches up and overtakes over the months the interest averages out more for the fixed. 

A gap of 1.4% seems reasonable (the variable would have to catch up and then overtake by that in the 12 months) so 3.2% sounds about right now. Next month they will likely go up again - so the rates might be 2.2% variable and 3.6% for a good fixed. Putting a certain amount into a new fix every few months or so is another way to avoid losing out.

Each week some places increase their fixed rates while the others don't - maybe it depends on whether they want an inflow of funds - any of them can come out with a good rate to jump to the top of the table. With variable you just lose out by staying with any that are slow in raising their rates,

Thumbs_Up

jak22 said:

 With variable you just lose out by staying with any that are slow in raising their rates,

You don’t really. I have eleven (11) savings accounts you just have to adapt to the modern world, loose your inner inhabitation and be ruthless. If one account is paying 0.1% less then your other account, just move your money over, it’s quicker then boiling a kettle, then what you do is drink your beverage self-satisfied.  

Millyonare

I'd setup up a spreadsheet calculator and calculate multiple "future daily % rate" scenarios and see what numbers pop out (before and after tax, in different tax years).

A (very) quick toggle in Excel suggests little difference in £ interest earned between £80k x 1 vs. £20k x 4 (over a 1-year window). A better option might be £40k x 2. All depends on % rates, predicted timing, and whether a 12, 18 or 24 month window is used, of course. Hence, the need for a homemade spreadsheet toggle.

Not advice. Dyor, etc.

redmalc

What's the general consensus on Monument Bank please

steveksullivan

Millyonare said:

I'd setup up a spreadsheet calculator and calculate multiple "future daily % rate" scenarios and see what numbers pop out (before and after tax, in different tax years).

A (very) quick toggle in Excel suggests little difference in £ interest earned between £80k x 1 vs. £20k x 4 (over a 1-year window). A better option might be £40k x 2. All depends on % rates, predicted timing, and whether a 12, 18 or 24 month window is used, of course. Hence, the need for a homemade spreadsheet toggle.

Not advice. Dyor, etc.

I have been trying to do something similar but I am struggling ..... (getting older....?!?!?!!?)

Is there any way you can / are you willing to  - share yours? ..... Thanks in advance either way!!!