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Savings Rates
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- Lemon Slice
- Posts: 461
- Joined: March 3rd, 2019, 12:25 pm
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Savings Rates
I keep a track of these.
These were the rates in early March 2020 when the BOE interest rate was 0.75%. The markets hadn't appreciably noticed Covid at that point. Even at this point as someone retired and living off my investments I was very unhappy about how low the rates were
Instant access 1.31%
1 yr bond 1.55%
2 yr bond 1.7%
3 yr bond 1.8%
5 yr bond 1.9%
By the end of March 2020 the BOE had cut rates twice to 0.1% and from there rates fell and fell hitting the low in April 2021. The rates were then:
Instant access 0.5%
1 yr bond 0.6%
2 yr bond 0.7%
3 yr bond 0.9%
5 yr bond 1.3%
Rates have been picking up since then and are now:
Instant access 0.5%
1 yr bond 1.1%
2 yr bond 1.25%
3 yr bond 1.36%
5 yr bond 1.7%
It's interesting that there were many posts on this topic as rates fell but almost none as they have been rising.
It's also interesting that whilst these rates have been going up corporate bond yields have been falling suggesting the challenger banks who offer the best rates require cash but the large corporates who access cash from pension funds and institutions etc are awash with cash and the difference is not being abritraged. Different companies with different objectives I guess.
I hope the rates continue to rise.
These were the rates in early March 2020 when the BOE interest rate was 0.75%. The markets hadn't appreciably noticed Covid at that point. Even at this point as someone retired and living off my investments I was very unhappy about how low the rates were
Instant access 1.31%
1 yr bond 1.55%
2 yr bond 1.7%
3 yr bond 1.8%
5 yr bond 1.9%
By the end of March 2020 the BOE had cut rates twice to 0.1% and from there rates fell and fell hitting the low in April 2021. The rates were then:
Instant access 0.5%
1 yr bond 0.6%
2 yr bond 0.7%
3 yr bond 0.9%
5 yr bond 1.3%
Rates have been picking up since then and are now:
Instant access 0.5%
1 yr bond 1.1%
2 yr bond 1.25%
3 yr bond 1.36%
5 yr bond 1.7%
It's interesting that there were many posts on this topic as rates fell but almost none as they have been rising.
It's also interesting that whilst these rates have been going up corporate bond yields have been falling suggesting the challenger banks who offer the best rates require cash but the large corporates who access cash from pension funds and institutions etc are awash with cash and the difference is not being abritraged. Different companies with different objectives I guess.
I hope the rates continue to rise.
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- Lemon Quarter
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Re: Savings Rates
Gan020 wrote:I hope the rates continue to rise.
That’s only any good if they rise faster than inflation - which they won’t.
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- Lemon Slice
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Re: Savings Rates
The trouble with rising interest rates is that they can induce paralysis (unless you are looking at easy access accounts). Is it worth tying my money up for 12 months for an extra 0.6% if interest rates are likely to rise in the near future? I certainly don't fancy tying it up for an extra 4 years to bag an extra 0.6%. This is a problem as I keep having previously set up 5 year fixed rate accounts maturing.
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- Lemon Slice
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Re: Savings Rates
Rates moving up nearly daily in the less than 5 year zone. Tandem and Zopa seem to be competing to be at the top. They clearly want our cash.
Instant access 0.58%
1 yr bond 1.11%
2 yr bond 1.36%
3 yr bond 1.44%
5 yr bond 1.7%
Instant access 0.58%
1 yr bond 1.11%
2 yr bond 1.36%
3 yr bond 1.44%
5 yr bond 1.7%
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- Lemon Slice
- Posts: 461
- Joined: March 3rd, 2019, 12:25 pm
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Re: Savings Rates
Only a week since my last post and rates still moving up fast. It's not yet reached the point where the gap between instant access and a 2 year term is enough to entice, but it's got to the point I'm bothered to work out the maths
Instant access 0.65%
1 yr bond 1.22%
2 yr bond 1.41%
3 yr bond 1.5%
5 yr bond 1.7%
Instant access 0.65%
1 yr bond 1.22%
2 yr bond 1.41%
3 yr bond 1.5%
5 yr bond 1.7%
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- Lemon Slice
- Posts: 461
- Joined: March 3rd, 2019, 12:25 pm
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Re: Savings Rates
1 week since last post. Rates still moving up nicely
Instant access 0.65%
1 yr bond 1.31%
2 yr bond 1.46%
3 yr bond 1.55%
5 yr bond 1.72%
Instant access 0.65%
1 yr bond 1.31%
2 yr bond 1.46%
3 yr bond 1.55%
5 yr bond 1.72%
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- Lemon Half
- Posts: 6050
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Re: Savings Rates
but still way below the rate of inflation
A tracker fund will give you a much better return (IMHO)
A tracker fund will give you a much better return (IMHO)
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- Lemon Slice
- Posts: 461
- Joined: March 3rd, 2019, 12:25 pm
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Re: Savings Rates
Instant access 0.65%
1 yr bond 1.41% up 0.1% this week
2 yr bond 1.67% up 0.21% this week
3 yr bond 1.76% up 0.21% this week
5 yr bond 1.81% up 0.09% this week
It seems some of the challenger banks are desperate for cash as the economy reopens.
1 yr bond 1.41% up 0.1% this week
2 yr bond 1.67% up 0.21% this week
3 yr bond 1.76% up 0.21% this week
5 yr bond 1.81% up 0.09% this week
It seems some of the challenger banks are desperate for cash as the economy reopens.
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- Lemon Slice
- Posts: 461
- Joined: March 3rd, 2019, 12:25 pm
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Re: Savings Rates
This weeks rates
Instant access 0.65% no movement
1 yr bond 1.5% up 0.09% this week
2 yr bond 1.75% up 0.08% this week
3 yr bond 1.77% up 0.01% this week
5 yr bond 1.86% up 0.05% this week
At present I have little cash on instant access apart from NSandI which pays me around 0.9% if I assume I never win one of the bigger prizes.
The two year bond rate is now enough to make me consider if locking up my money for 2 years for an additional 0.85% is worth it. Can't make my mind up.
Instant access 0.65% no movement
1 yr bond 1.5% up 0.09% this week
2 yr bond 1.75% up 0.08% this week
3 yr bond 1.77% up 0.01% this week
5 yr bond 1.86% up 0.05% this week
At present I have little cash on instant access apart from NSandI which pays me around 0.9% if I assume I never win one of the bigger prizes.
The two year bond rate is now enough to make me consider if locking up my money for 2 years for an additional 0.85% is worth it. Can't make my mind up.
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- Lemon Half
- Posts: 6050
- Joined: May 30th, 2021, 6:01 pm
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Re: Savings Rates
As you seen keen on cash savings rates (as opposed to a tracker fund or shares, which I understand are not for everyone)
try Atom Bank 2 year 1.75
https://www.atombank.co.uk/fixed-saver/
You have to set it up on your phone
(I did a few years ago and had my account ready to go, but they they cut their rate just befoe I was abopuit to deposit with them so I put it into shares instead)
try Atom Bank 2 year 1.75
https://www.atombank.co.uk/fixed-saver/
You have to set it up on your phone
(I did a few years ago and had my account ready to go, but they they cut their rate just befoe I was abopuit to deposit with them so I put it into shares instead)
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- Lemon Slice
- Posts: 461
- Joined: March 3rd, 2019, 12:25 pm
- Has thanked: 177 times
- Been thanked: 246 times
Re: Savings Rates
Upward movement in rates starting to slow down after a large move over the last couple of months.
Instant access 0.65% no movement
1 yr bond 1.5% no movement
2 yr bond 1.76% up 0.01% this week
3 yr bond 1.81% up 0.04% this week
5 yr bond 1.86% no movement
Instant access 0.65% no movement
1 yr bond 1.5% no movement
2 yr bond 1.76% up 0.01% this week
3 yr bond 1.81% up 0.04% this week
5 yr bond 1.86% no movement
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