Martin Lewis: Urgent warning for savers as base rate held at 5.25%

You should open a fixed savings rate NOW in case rates are cut, MoneySavingExpert.com founder Martin Lewis has warned. His message comes as the Bank of England today (21 September) voted to maintain the current base rate at 5.25% following 14 consecutive rises.

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Martin Lewis: Urgent warning for savers as base rate held at 5.25%

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Comments

  • ccluedo
    ccluedo Posts: 440 Forumite
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    Following Martin's tweet earlier. I just tried to open the NSI Guaranteed Growth Bond @ 6.2%.
    The tweet suggested opening now but not funding immediately however I can't see a way to do that as it asks for the funding during the opening process.  Any ideas of the way around that pls?
  • Ns&I 6.2% have to be funded immediately on application.
    Raisin have a 6.34% 1 year fix that doesn't have to be funded immediately.
  • I opened a NS&I GGB yesterday and funded it during the opening process - I don't think you can open one and fund it later.
    'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.
  • ccluedo
    ccluedo Posts: 440 Forumite
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    Ns&I 6.2% have to be funded immediately on application.
    Raisin have a 6.34% 1 year fix that doesn't have to be funded immediately.
    Great, I'll have a look at Raisin :smile:  
  • I dont think Raisin is 6.34, hgihest is 6.10%
  • molerat
    molerat Posts: 31,823 Forumite
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    edited 21 September 2023 at 2:30PM
    jaceyboy said:
    I dont think Raisin is 6.34, hgihest is 6.10%
    The new customer £25 cash bonus takes the effective rate to 6.34%


  • molerat said:
    jaceyboy said:
    I dont think Raisin is 6.34, hgihest is 6.10%
    The new customer cash bonus takes the effective rate to 6.34%


    So if a new customer invests £85k their effective rate will be 6.34%? 
  • So it begins, the panic, we have been here before you know.


  • refluxer
    refluxer Posts: 2,674 Forumite
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    edited 21 September 2023 at 2:35PM
    Nova1307 said:
    molerat said:
    jaceyboy said:
    I dont think Raisin is 6.34, hgihest is 6.10%
    The new customer cash bonus takes the effective rate to 6.34%


    So if a new customer invests £85k their effective rate will be 6.34%? 
    No, I think 6.34% is based on the minimum qualifying contribution which is £10k (so £25 cashback added to the interest from £10k)

    I haven't done the calculation but, at £85k, the effective rate will only be a small amount over the offered 6.1% I suspect and almost certainly not as high as 6.2%.

    Update - I make it an effective rate of 6.13% for £85k @ 6.1% with £25 cashback.
  • molerat
    molerat Posts: 31,823 Forumite
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    You can bung it into NS&I with 30 days to change your mind.
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