Future savings rates where are they going?

pedrodelgado

Hi wondered what peoples thoughts are on fixed term bond rates. With the base rate forecast to rise until next summer at least ,then cuts are forecast from 2024, when is the best time to lock in a 5 year fix? Is it when the one year rate overtakes the 5 yr rate? `If they aren't offering favourable rates for 5 yrs they obviously think the rates are gonna drop in a couple of years and don't want to be paying savers over the odds for those final 3 yrs. At the moment you can get 3.5% for 12 months and only 3.55% for 5 years. Yeah you could get more for a year if that continues to heat up and rise above the best 5 yr but when that year is up will you have the option to lock away again at a better or worse rate? Would be nice to be getting say 4% for 5 years if the final 3 years of it, the best rate for any duration has dropped bellow 4%. Yes you could maybe be missing out on 1% for the first 2 years though you'll make it up and more for the last 3 yrs. I know it's small chips compared with inflation but gotta do the best you can. Thoughts.

wiseonesomeofthetime

Being discussed here - https://forums.moneysavingexpert.com/discussion/6367165/rate-predictions-2022-2023

pedrodelgado

Cheers, I'll take a look. 

Albermarle

Regardless of predictions I would always be a bit wary of fixing for 5 years anyway, as a lot of unpredictable things can happen in 5 years.

MX5huggy

Albermarle said:

Regardless of predictions I would always be a bit wary of fixing for 5 years anyway, as a lot of unpredictable things can happen in 5 years.

Maybe that’s why you should fix for 5 years? 

RobM99

MX5huggy said:

Albermarle said:

Regardless of predictions I would always be a bit wary of fixing for 5 years anyway, as a lot of unpredictable things can happen in 5 years.

Maybe that’s why you should fix for 5 years?

Maybe that's why you should not  fix for 5 years?

mlc2009

According to comments on dailymail the interest rates should be 15 percent already. Volcker style