Real return on bank savings
Posted: January 6th, 2024, 10:05 am
With banks offering 5%+ on 1/2 year fixed rate bonds, and cpi inflation at 3.9%, there is a window open where you can save and make a real return with no risk.
Inflation is set to fall this year and interest rates are expected to be cut from spring. So you'd assume these deals won't be available for much longer. Cpi peaked at 11% in Oct 22 and latest is 3.9%.
The 11% lost to inflation (cough) let's not worry about that too much
With the base rate held at 5.25% until underlying inflation also falls to 2% target, you can lock in a savings of 5%+.
Inflation is set to fall this year and interest rates are expected to be cut from spring. So you'd assume these deals won't be available for much longer. Cpi peaked at 11% in Oct 22 and latest is 3.9%.
The 11% lost to inflation (cough) let's not worry about that too much
With the base rate held at 5.25% until underlying inflation also falls to 2% target, you can lock in a savings of 5%+.