Opinions on savings rates

QQQQQQQQ_Y

https://forums.moneysavingexpert.com/discussion/comment/81935943#Comment_81935943

My understanding is that the government determines the overall targets for National Savings and they set products parameters within that - to some extent they are not as directly affected by interest rate changes as banks/building societies, and if they do raise rates too high they are likely to receive criticism from market-driven institutions.

Section62

https://forums.moneysavingexpert.com/discussion/comment/81935985#Comment_81935985

If there is a significant outflow of cash due to (unfounded) loss of confidence in NS&I as a safe place to keep your money then a rate adjustment may be needed sooner rather than later….

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81938116#Comment_81938116

What we're discussing here is more outflow due to uncompetitive rates. In flights to safety people usually head to the NS&I rather than away.

Albermarle

Maybe there will be a U turn ?

Malchester

There is great uncertainty where interest rates will go. Could stabilise, go up, or go down. I currently have more in easy access accounts (both ISA and non-ISA) than usual having adjusted the balance between fixed and easy access but am ready to go back to fixed rate when / if things change. Easy access accounts seem better value at the moment.

Section62

https://forums.moneysavingexpert.com/discussion/comment/81938207#Comment_81938207

My point was that when headlines scream that NS&I might not be as 'safe' as people believed then for some the flight to safety might be the reverse of the traditional direction. Thus the outflow due to uncompetitive rates might be supplemented by some extra outflow due to loss of trust in NS&I as a place of safety.

J63320

https://forums.moneysavingexpert.com/discussion/comment/81935428#Comment_81935428

A heads-up for anyone who’s planning to do this: check your account’s Ts and Cs. Most fixed rate accounts mature into easy access accounts by default, but I have a fixed ISA ending in May that will mature into a similar fixed rate product, so I’ll be setting up a transfer to an easy access ISA ahead of the maturity date, with the instruction to wait until maturity to execute it.