Viewing 11 posts - 1 through 11 (of 11 total)
  • Savings % rate … likely to go up soon, or not?
  • Aus
    Free Member

    Any thoughts on savings rates and likely movements in the next month or two … seen one at 3.4% fixed for 12 months. We have a small pot and happy to tie it in for 12 months.

    Good deal or best waiting a wee while until current turmoil and interest rate/sterling movements settle a bit?

    Cheers

    martinhutch
    Full Member

    Base rate is heading for 6% within weeks. Savings rates increases will follow this. I wouldn’t fix immediately.

    5lab
    Full Member

    you can get 30 day notice accounts at 2ish – I’d go for one of them at the moment

    andrewh
    Free Member

    My mortgage is fixed at 1.86% for the next four and half years.
    Because of this I’m not overpaying, makes more sense to save it, rates are already available above that, then cash in savings at the end of the fixed rate period and pay off a chunk then before remortgaging.
    Also means I have access to it in an emergency which I wouldn’t had I overpaid.
    .
    How high savings rates will goni don’t know. The premium bond expected return went from 1% to 1.4% recently, not keeping with the movement in the base rate but going up a bit

    sharkbait
    Free Member

    OP, have you got your mortgage covered/fixed already?

    Singletrack Reader Awards - Most Desirable Mountain Bike: Atherton AM 150

    Singletrack Reader Awards - Most De...
    Singletrack Video Archive: Singletrack Reader Awards - Most Desirable Mountain Bike: Atherton AM 150
    Kryton57
    Full Member

    Because of this I’m not overpaying, makes more sense to save it, rates are already available above that

    Make sure you do your maths on the compounded values/savings of overpayment, its not just the headline rate which counts.

    the-muffin-man
    Full Member

    Bookmarking! 🙂

    Ours is just sat in a Nationwide Instant Saver account making bugger-all. Been reluctant to invest with markets as they are.

    Kryton57
    Full Member

    I’d also add that over £1000 of interest attracts income tax, so watch out for that – it quickly erase the headline rate unless you use a tax free wrapper e.g. an ISA.

    5lab
    Full Member

    Make sure you do your maths on the compounded values/savings of overpayment, its not just the headline rate which counts.

    compounding works exactly the same whether saving or borrowing, so you don’t need to worry about this. You should consider any tax implications on your savings, but most people don’t have enough saved up with current interest rates for the taxable income to be an issue

    Kryton57
    Full Member

    I get that 5lsab – but not if a 3% savings rate is only available for 3yrs say, whereas paying 1.85% on the same amount over 25 years would equate to more paid than earned.

    I appreciate it requires a lot of future gazing & of course you can move the savings around but it often requires some awareness and housekeeping to keeping it effective most of the time. Its not necessarily fit & forget.

    5lab
    Full Member

    I get that 5lsab – but not if a 3% savings rate is only available for 3yrs say, whereas paying 1.85% on the same amount over 25 years would equate to more paid than earned

    true,in that scenario the best thing to do would be to earn 3% for the first 3 years, then shift the money onto the 1.85% mortgage once the rate of that is higher.

Viewing 11 posts - 1 through 11 (of 11 total)

You must be logged in to reply to this topic.

Thanks for popping by - why not stay a while?IT'S FREE

Sign up as a Singletrack Member and you can leave comments on stories, use the classified ads, and post in our forums, do quizzes and more.

Join us, join in, it’s free, and fun.