Saving rates

lbudd

As a new saver.
I was holding on until december to re-invest into a 5yr fixed.
However devistated to see the interest rates are actually dropping. From a 5.05% few days ago to 4.95% today.
Will they continue to drop?
Id thought they'd rise?

SuzieSue

I personally think we reached the peak and I put all my savings in bonds last week.  I have been watching the rates for the past month and didn't want to wait anymore as they were not going up.

eskbanker

lbudd said:

As a new saver.
I was holding on until december to re-invest into a 5yr fixed.
However devistated to see the interest rates are actually dropping. From a 5.05% few days ago to 4.95% today.
Will they continue to drop?
Id thought they'd rise?

Whatever it was that led you to assume that rates would keep rising was evidently flawed, holding on in the expectation of future movements is always going to be a gamble.  Hardly 'devastating' to see a minor reduction of 0.1% though, so take it while you can, unless you believe that rates will start increasing again (nobody knows....)

Albermarle

However devistated to see the interest rates are actually dropping. From a 5.05% few days ago to 4.95% today.

You would have to have a huge amount of money to save for a 0.1% difference to be devastated by.

Many investors in stocks and shares have seen 20% losses, how would that make you feel ?

FieyrP125

Have to say I thought they would rise especially after the 0.75 increase in the base rate - obviously presumed wrong.

Not sure to invest now or wait (again) to see if any saving rate movements when the rate (most probably) increases again at the next BOE rate meeting in December

StevenGude

FieyrP125 said:

Have to say I thought they would rise especially after the 0.75 increase in the base rate - obviously presumed wrong.

Not sure to invest now or wait (again) to see if any saving rate movements when the rate (most probably) increases again at the next BOE rate meeting in December

Not an expert but cant see rates rising again

Why not do 50% now 50% later and mitigate the risk?

Bigwheels1111

FieyrP125 said:

Have to say I thought they would rise especially after the 0.75 increase in the base rate - obviously presumed wrong.

Not sure to invest now or wait (again) to see if any saving rate movements when the rate (most probably) increases again at the next BOE rate meeting in December

I believed the same as you, a rise would come. O was I wrong.
I managed to get 5% for 5 years with Tandem yesterday.
I need another 5 year fixed, but will risk waiting until December, who knows.

MikeJXE

I'm waiting till after the 15th December as it could go up another 0.75% and I only want to fix for a couple of years 

lbudd

Bigwheels1111 said:

FieyrP125 said:

Have to say I thought they would rise especially after the 0.75 increase in the base rate - obviously presumed wrong.

Not sure to invest now or wait (again) to see if any saving rate movements when the rate (most probably) increases again at the next BOE rate meeting in December

I believed the same as you, a rise would come. O was I wrong.
I managed to get 5% for 5 years with Tandem yesterday.
I need another 5 year fixed, but will risk waiting until December, who knows.

I also will be investing in an other fixed 5yr in december when my 6 month finishes. I hope the rates dont keep dropping. I thought theyd rise, ' as everything on mse martin lewis is saying they were suppose too keep rising into next year.

eskbanker

lbudd said:
I thought theyd rise, ' as everything on mse martin lewis is saying they were suppose too keep rising into next year.

Neither Martin Lewis nor anyone else on this site knows whether rates will rise or fall, so it's not a case of what they were 'supposed' to do!  It's important to understand that fixed term interest rates aren't particularly closely aligned with the Bank of England base rate, so it's entirely plausible for that to increase without long-term savings interest rates doing the same, or indeed doing the exact opposite....

jimexbox

MikeJXE said:

I'm waiting till after the 15th December as it could go up another 0.75% and I only want to fix for a couple of years 

I think next base rate rise will be max 0.5, possibly as low as 0.25. Then a pause for a few months. I put all my funds, bar emergency cash in a one year bond last week.