Have UK savings rates peaked in Oct 2022?

hallmark

Criminally incompetent Andrew Bailey has failed to address the inflation he helped cause at literally every opportunity and there's no sign that'll change.  Now we hear that QT is shelved too.

Albermarle

Desk said:

isasmurf said:

 I'd expect the top of the rates to be slightly lower than recently for a short period before rising again. 

Are you referring to easy access or fixed rates?

Currently, you can get a five year fix at 5 per cent, but this is surely based on where the base rate is anticipated to peak? It doesn't have much to do with where the base rate currently sits at 2.25 per cent.

It's surely not as if the base rate is going to reach 5.25 per cent as is now expected, and that a five year fixed at that point will be offering you 8 per cent - tracking 2.75 point above the base rate?

The 5 year rate is based on the anticipated peak, as you say, and what happens after that.
By the time the BofE rates peak, the 5 year savings rates may well have gone down and/or be less than one year rates.
But it is all guess work of course.

Expotter

hallmark said:

Criminally incompetent Andrew Bailey has failed to address the inflation he helped cause at literally every opportunity and there's no sign that'll change.  Now we hear that QT is shelved too.

A Bank of England spokesman said: "This morning's FT report that the BoE has decided to delay MPC gilt sales ('QT') is inaccurate."

t1redmonkey

I think the best thing to do is just open the top paying fixed rate accounts every so often, and then wait to see what happens, since you usually have a fair amount of time after opening one before the deadline for funding it closes.  e.g. Gatehouse top fixed rate accounts currently available, you have 30 days to fund them, and then 14 days cooling off once funded where you can close them without penalty.

andyhicks88

Dudley Building Society now showing on MoneyFacts as the top 1yr fix at 4.75%!

Topiary

andyhicks88 said:

Dudley Building Society now showing on MoneyFacts as the top 1yr fix at 4.75%!

can only see 5 year 3.9 on their website

Expotter

andyhicks88 said:

Dudley Building Society now showing on MoneyFacts as the top 1yr fix at 4.75%!

Withdrawn already, replaced by JN bank 1 year fixed at 4.75% or 2 year fixed at 5%

Oasis1

I think we'll see them rise further by end of this year, after the Nov BoE announcement. I'm hoping for a 1 year fixed ISA at 4%+ before I jump

masonic

I would guess 'no' for the shorter term fixes, but am undecided about long term fixes (e.g. 5 year)

Expotter

From today's Guardian:

One of the Bank’s deputy governors, Ben Broadbent, said the rise in rates priced in by markets – from 2.25% now to 5.25% over the coming months – was not a foregone conclusion and would deliver a “pretty material” hit to the economy.

In a speech at Imperial College London, shortly before Liz Truss’s resignation on Thursday afternoon, he said: “Whether official interest rates have to rise by quite as much as currently priced in financial markets remains to be seen.”

I read that as the BoE probably won't go beyond 4.5 to 5%, especially if a recession is already here. So I'm not sure what that means for fixed rate deals, might it be that around 5% is as good as it'll get?