Decision on Savings Accounts

edited 3 November 2022 at 7:10PM in Savings & investments
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edited 3 November 2022 at 7:10PM in Savings & investments
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%

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  • Bigwheels1111Bigwheels1111 Forumite
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    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.
  • edited 3 November 2022 at 6:42PM
    jak22jak22 Forumite
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    edited 3 November 2022 at 6:42PM
    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
  • eskbankereskbanker Forumite
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    The Bank of England is quoted as saying there is unlikely to be any further holes in interest rates
    Seems an unlikely quote!
  • DoneWorkingDoneWorking Forumite
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    eskbanker 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 
  • isasmurfisasmurf Forumite
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    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.

  • edited 3 November 2022 at 8:51PM
    SwipeSwipe Forumite
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    edited 3 November 2022 at 8:51PM
    As long as the Fed and ECB keeps hiking there'll probably be another 50 and 25 basis points coming
  • edited 3 November 2022 at 9:30PM
    DoneWorkingDoneWorking Forumite
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    edited 3 November 2022 at 9:30PM
    isasmurf 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
  • MillyonareMillyonare Forumite
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    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.
  • AlbermarleAlbermarle Forumite
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    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.......


  • edited 4 November 2022 at 4:42PM
    DoneWorkingDoneWorking Forumite
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    edited 4 November 2022 at 4:42PM
    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 
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