Fixed rate in November 2022 vs Fixed rate in June 2023 (fun experiment)

t1redmonkey

I will just preface this by saying some of my methodology may be wrong, but I was curious about this so just wanted to try and calculate.  Thought I'd do a little experiment to compare two scenarios:

a) Someone who fixed £100k at the peak 5 year rate in November 2022 after the mini budget fallout at 5.1%
vs
b) Someone who kept £100k in an easy access account between November 2022 until June 2023, and then fixed for 5 years at 5.35% (the current highest rate)

In scenario b, I believe the top easy access in November 2022 was 2.75%, and let's say it's around about 3.85% now, so I just took a middle figure of 3.3% across the whole 7 months for my calculations.

I have used a simple figure of £100,000 for these.  Scenario B below has two screenshots, as I've done one for the 'easy access' portion, and one for the 'fixed term' portion.  I think it's interesting how close they end up (assuming i've input all of the correct figures!).

Both scenarios are assuming someone is compounding the interest rather than having it paid out to an external account, and obviously I'm not factoring tax into any of this.

Scenario A



Scenario B

metrobus

So about £50 in it over the 5 years or 0.05% on the £100k over 5 years so let’s call it 0.01 % yearly.