Fixed rate/term saving accounts - best around?

WindfallWendy

Hi - 

I know there is the Regular Savers thread on here, but I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

I have come across Principality's 5.15% fixed for 12 months which is most appealing at the moment, but figured clever bods on here would know the nooks and crannies I don't. 

Any hidden gems out there? I have a current account which earns 3.8% but it's variable so I'm expecting it to go down. 

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

FlorayG

First Direct have a regular saver, pays 7% if you don't withdraw for 12 months

WindfallWendy

Thanks - got that one! But I'm looking for fixed term/rate accounts to lock a chunk of money away rather than add to my regular saver portfolio. Maybe it's the case that it's better to keep investing in RS accounts.

I was looking at Market Harborough BS (I have a RS with them too) and they have a 190 day notice account (!) which offers 5.1% too, but it's variable so that doesn't sound like much fun. But is the next best I've found after Principality.

refluxer

That Principality fixed rate @ 5.15% is actually another Regular Saver bond. Because the rate is fixed for the year, it appears in the list of fixed rate accounts on their site, alongside their normal (non-RS) fixed rate bonds which is actually quite annoying as they are obviously very different types of accounts. If you've got a large lump sum and already have lots of other Regular Savers open, then a non-RS fix can often make more sense - the main downside of which being that the money is inaccessible compared to a RS, where you can usually get access to the money.

How long are you wanting to fix for ? Principality's 1 year (non-RS) fixed rate bond is currently 4.30% but you can do better than that elsewhere, with the best rate available currently being 4.80% (see this list).

As I'm not a fan of the savings platforms you'd need to go through to get those very top rates (the downsides to using them outweigh the slightly better rates for me), of the next best you've got established players like Oxbury, SmartSave and Secure Trust in the 4.70-4.76% region, with app-only banks like Tandem, Atom and Zopa not too far behind.

I'm a big fan of Oxbury and have a few fixed rate bonds with them. They often have better rates for existing members only too (their 'existing customer' 1 year bond is currently 4.76% compared with the 4.70% available to all, for example) and opening any account with them will give you immediate access to those exclusive accounts so if you were wanting to fix for a year, it would make sense to open another account first (eg. a longer fix or an easy access account) and then you'd be able to get the 4.76% rate. Access to their online banking site is quick (via the app - I use a fingerprint) and their site is one of the best I've come across and puts many high-street banks to shame.

If you're happy with app-only banking, then Atom are great too. Payments in and out of their accounts are truly instant and I've not had a single issue with them. If you're wanting to fix for longer (2-5 years) then they've currently got the best rates available.

Albermarle

WindfallWendy said:

Hi - 

I know there is the Regular Savers thread on here, but I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

I have come across Principality's 5.15% fixed for 12 months which is most appealing at the moment, but figured clever bods on here would know the nooks and crannies I don't. 

Any hidden gems out there? I have a current account which earns 3.8% but it's variable so I'm expecting it to go down. 

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

Are you aware that normally when opening a fixed rate/term account, you have a limited time to add new funds from opening the account . Usually 14 to 30 days.
Also you can not withdraw early from most, unless you are virtually on your deathbed.

wmb194

https://moneyfactscompare.co.uk/savings-accounts/

spreadsheeterapple

WindfallWendy said:

.... I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

It rather depends what you are looking to achieve, and whether short-term or long-term
- e.g. You might put some into a fixed rate fixed term of only 6 months, which would take your interest earned into the new tax year, and also the capital would mature in the new tax year when placing in an ISA would then become possible.
- you might consider that although a 5-year rate is currently lower than a 1-yr rate, that might become quite a good rate in 2 or 3 years down the line, so that overall you would gain more interest on that capital sum. If you take a 5-yr term, consider how much interest it would earn, and in which tax year it would pay that to you; looking at annual payments to you would spread the interest income in different tax years. But that assumes you have no reason to need money back before end of the 5 years, as early withdrawal is either not allowed or has hefty interest penalties.
- similar decisions for taking a 3-yr term as opposed to a 1-yr for instance.
- if you had a spouse, you might have considered transferring some to them to open their own savers & ISAs, as married people can transfer between themselves tax free and the receiving spouse would be using their own tax allowances. (I mention this option for completeness, for other readers; I understand it won't suit your own circumstances necessarily).
- if you have children or grandchildren, you might consider gifting some to 'pass on to next generation'. In this case there are a range of options depending on their age, such as Junior ISA, Junior SIPP, or paying into an adult's pension.
- you might use some money to start a whole-life policy, which could pay for inheritance tax if you're in the situation of needing to forward-plan for that.

Just a few thoughts.

subjecttocontract

WindfallWendy said:

Hi - 

I know there is the Regular Savers thread on here, but I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

I have come across Principality's 5.15% fixed for 12 months which is most appealing at the moment, but figured clever bods on here would know the nooks and crannies I don't. 

Any hidden gems out there? I have a current account which earns 3.8% but it's variable so I'm expecting it to go down. 

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

It's a good question and prompted me to look at a breakdown our savings 
13.17% Premium Bonds
45.33% ISAs
14.49% Fixed Rate A/Cs (mainly via HL & Raisin)
 5.92%  Easy Access A/Cs
 7.24%  Regular Savers (total 23 of which 12 are fixed rate)
13.84% Misc 

Albermarle

subjecttocontract said:

WindfallWendy said:

Hi - 

I know there is the Regular Savers thread on here, but I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

I have come across Principality's 5.15% fixed for 12 months which is most appealing at the moment, but figured clever bods on here would know the nooks and crannies I don't. 

Any hidden gems out there? I have a current account which earns 3.8% but it's variable so I'm expecting it to go down. 

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

It's a good question and prompted me to look at a breakdown our savings 
13.17% Premium Bonds
45.33% ISAs
14.49% Fixed Rate A/Cs (mainly via HL & Raisin)
 5.92%  Easy Access A/Cs
 7.24%  Regular Savers (total 23 of which 12 are fixed rate)
13.84% Misc 

So no investments at all, only cash savings ?
You say you had a workplace pension, but you have not included it in this list.

subjecttocontract

Albermarle said:

subjecttocontract said:

WindfallWendy said:

Hi - 

I know there is the Regular Savers thread on here, but I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

I have come across Principality's 5.15% fixed for 12 months which is most appealing at the moment, but figured clever bods on here would know the nooks and crannies I don't. 

Any hidden gems out there? I have a current account which earns 3.8% but it's variable so I'm expecting it to go down. 

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

It's a good question and prompted me to look at a breakdown our savings 
13.17% Premium Bonds
45.33% ISAs
14.49% Fixed Rate A/Cs (mainly via HL & Raisin)
 5.92%  Easy Access A/Cs
 7.24%  Regular Savers (total 23 of which 12 are fixed rate)
13.84% Misc 

So no investments at all, only cash savings ?
You say you had a workplace pension, but you have not included it in this list.

We keep investments separate, the op question was specifically about savings.
I think you may be confusing my response with another.

Albermarle

subjecttocontract said:

Albermarle said:

subjecttocontract said:

WindfallWendy said:

Hi - 

I know there is the Regular Savers thread on here, but I was wondering where people were locking away chunks of money (i.e. best NON-Regular Saver) as my latest fixed rate account has just expired and reverted to 1.5%

I have come across Principality's 5.15% fixed for 12 months which is most appealing at the moment, but figured clever bods on here would know the nooks and crannies I don't. 

Any hidden gems out there? I have a current account which earns 3.8% but it's variable so I'm expecting it to go down. 

Thanks

PS - I have maxed my ISA and Premium bonds and chucked some into pension already so resigned to taxable interest earning now.

It's a good question and prompted me to look at a breakdown our savings 
13.17% Premium Bonds
45.33% ISAs
14.49% Fixed Rate A/Cs (mainly via HL & Raisin)
 5.92%  Easy Access A/Cs
 7.24%  Regular Savers (total 23 of which 12 are fixed rate)
13.84% Misc 

So no investments at all, only cash savings ?
You say you had a workplace pension, but you have not included it in this list.

We keep investments separate, the op question was specifically about savings.
I think you may be confusing my response with another.

You are right !