Another Blow To Savers On The Way

Stavros_3

The B.O.E state that there will be another cut in interest rates in April, good news for borrowers but bad for savers, Now here's my dilemma. I am looking very much to going with the Nationwide fixed rate isa on April 6th, currently 6.15% (unless sommat comes along better) now with the current climate would it be prudent to go for the 1 or 2 yr fix with them as the 2 yr fix is also 6.15%. see article below

http://www.thisismoney.co.uk/news/article.html?in_article_id=434752&in_page_id=2&ct=5

bristolleedsfan

Stavros wrote: »

The B.O.E state that there will be another cut in interest rates in April, good news for borrowers but bad for savers, Now here's my dilemma. I am looking very much to going with the Nationwide fixed rate isa on April 6th, currently 6.15% (unless sommat comes along better) now with the current climate would it be prudent to go for the 1 or 2 yr fix with them as the 2 yr fix is also 6.15%. see article below

http://www.thisismoney.co.uk/news/article.html?in_article_id=434752&in_page_id=2&ct=5

If u are confident that u wont need the funds for two years then a two year fix would appear prudent IMO.

Im fixing for One Year so as to keep an option of moving house in 2009 open.

cloud_dog

Stavros wrote: »

...... now with the current climate would it be prudent to go for the 1 or 2 yr fix with them as the 2 yr fix is also 6.15%.[/URL]

No one can tell the future so why no split it 50/50 in to 1 and 2 year fixed (did the same for me mums ISA).

cloud_dog

ianmr65

Stavros wrote: »

The B.O.E state that there will be another cut in interest rates in April, good news for borrowers but bad for savers, Now here's my dilemma. I am looking very much to going with the Nationwide fixed rate isa on April 6th, currently 6.15% (unless sommat comes along better) now with the current climate would it be prudent to go for the 1 or 2 yr fix with them as the 2 yr fix is also 6.15%. see article below

http://www.thisismoney.co.uk/news/article.html?in_article_id=434752&in_page_id=2&ct=5

I won't pretend to be able to predict what intrest rates are going to do. Or i would be a great deal richer than I am.
But you might want to bear in mind that over the last 6 months mortgage rates, and saving rates have not followed base rate, anything like as closly as you would expect. This is due to the credit crunch and the fact that institutions are not able to obtain funds anything like as easily as before last july.
Also the banks that are offering the best rates to savers, and worst rates to boorrowers are those that have struggled most, to get the funds they need to operate.

I know this is not a good answer to your question, but important to bear in mind when you are deciding.

Hungerdunger

Stavros wrote: »

The B.O.E state that there will be another cut in interest rates in April

I've looked at the article, and unless I've missed something I can't see where the BoE have stated there will be a cut in April.

Admittedly it looks likely, but I believe that until the monthly meeting in April, no decision has actually been made.

ManAtHome

Banks are skint - BoE is now largely irrelevent and reduced to continued devaluation (and increased inflation) to give the boss mcbroon that "well-placed stableness" feeling. You can still get savings rates above 6.5% (and more appearing regularly) - should tell you something...

barbcroft

In this issue it states that tsb Lloyds are doing a one year 8% regular savers account, this is not so, I had their 8% last year which finished on the 24th March, I ask to start off another 8% account for this year and they said they where not doing it again, so I closed the account, because after one year it goes into a tracker account which is very poor interst, and put the money into my isa,

Paul_Herring

Stavros wrote: »

The B.O.E state that there will be another cut in interest rates in April

They stated no such thing.

Stavros_3

Paul_Herring wrote: »

They stated no such thing.

Read between the lines

pavlovs_dog

i considered fixing for two years but hope to buy in late 2009, so dont want to tie up my funds and restrict my options.

bristolleedsfan

I read today that the 3 month inter banking lending rate went up to 6% yesterday.