Decision on Savings Accounts 3 November 2022 at 6:30PM edited 3 November 2022 at 7:10PM in Savings & investments 10 replies 991 views

DoneWorking

The Bank of England is quoted as saying there is unlikely to be any further hikes in interest rates and that inflation will be back below 2% in two years time

Obviously this is a projection and this may change overtime due to as yet unknown factors

What are people's thoughts on locking in to longer term fixed savings accounts

For example a series of three four and five year fixed interest accounts on or near 5% depending on how much money you want to lock away

Are there any other options 

Investing may give higher returns

But this looks good provided inflation does indeed drop to 2%

Bigwheels1111

I want 5 year fixed accounts paid annually and away so can be used as income.
I was going to jump in a 5%, but did not expect it to get there so quick.
I’m holding out for 6% now, or until February.
Lose a bit now but gain in the future.
Will keep an eye on Blme and Shawbrook as both do 7 year fixed. The rate are not quite enough yet.

jak22

It depends how you read what theyve said - but I dont think theyve said no more rises (above 3%) just that it might not peak as high as before so somewhere between 3% now and 4.75% max. The rates on offer tell you a lot about what experts think will happen. 

It has been worth thinking about fixes for months even with rising rates as theyve been so much higher than variable - but now 2yr might be attractive. The idea of holding out forever isnt necessarily a great strategy because of the gap above variable - which would need to catch up and then overtake by that amount to work out better

eskbanker

DoneWorking said:

The Bank of England is quoted as saying there is unlikely to be any further holes in interest rates

Seems an unlikely quote!

DoneWorking

eskbanker said:

DoneWorking said:

The Bank of England is quoted as saying there is unlikely to be any further holes in interest rates

Seems an unlikely quote!

Well spotted

holes changed to hikes 

isasmurf

DoneWorking said:

The Bank of England is quoted as saying there is unlikely to be any further hikes in interest rates and that inflation will be back below 2% in two years time

They have absolutely not said that it is unlikely there will be further increases in the Bank rate. Quite the opposite 

The majority of the Committee judges that, should the economy evolve broadly in line with the latest Monetary Policy Report projections, further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets.

Swipe

As long as the Fed and ECB keeps hiking there'll probably be another 50 and 25 basis points coming

DoneWorking

isasmurf said:

DoneWorking said:

The Bank of England is quoted as saying there is unlikely to be any further hikes in interest rates and that inflation will be back below 2% in two years time

They have absolutely not said that it is unlikely there will be further increases in the Bank rate. Quite the opposite 

The majority of the Committee judges that, should the economy evolve broadly in line with the latest Monetary Policy Report projections, further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets.

Note the 'may'

Blame the Guardian for poor analysis in its earlier article for my initial comment in the post

Millyonare

At least one major bank today (Friday) has removed its multiyear 5.00% savings accounts, and reduced them to 4.50%. The top may (or may not) be near.

Dyor, etc.

Albermarle

The top may (or may not) be near.

Or already past?

For sure I think waiting for a 6% 5 year deal, could be a long wait.......

DoneWorking

Albermarle said:

The top may (or may not) be near.

Or already past?

For sure I think waiting for a 6% 5 year deal, could be a long wait.......

I'm going to wait till a Five Year Fixed ISA gets near to 5 % 
I will review this in December