Savings interest rate thread
Discussion
Bowser87 said:
Get the feeling this ratcheting is going to continue for a while. Lots of cash parked at rates beyond the current level.
There appears to be no shortage of people with savings to invest, for now, so if any banks needs funds all they have to do is top the current flavour of the week leading rate.Overall I get the feeling savers have had the best of the savings bubble, but happy to be proved wrong.
981Boxess said:
here appears to be no shortage of people with savings to invest, for now, so if any banks needs funds all they have to do is top the current flavour of the week leading rate.
Overall I get the feeling savers have had the best of the savings bubble, but happy to be proved wrong.
Not when you consider banks are taking a near 100bps arbitrage from the Bank of England reserve account… Overall I get the feeling savers have had the best of the savings bubble, but happy to be proved wrong.
Easy access market contracted for the 3rd month on the trot to December, expect that to continue this year.
Bowser87 said:
981Boxess said:
There appears to be no shortage of people with savings to invest, for now, so if any banks needs funds all they have to do is top the current flavour of the week leading rate.
Overall I get the feeling savers have had the best of the savings bubble, but happy to be proved wrong.
Not when you consider banks are taking a near 100bps arbitrage from the Bank of England reserve account… Overall I get the feeling savers have had the best of the savings bubble, but happy to be proved wrong.
Easy access market contracted for the 3rd month on the trot to December, expect that to continue this year.
BOE rate increases in the next year?
1/2/3/4/5 year Bond rates from where we are now?
Instant Access accounts rates from where we are now?
981Boxess said:
k, so with that in mind what do you think will happen to:
BOE rate increases in the next year?
1/2/3/4/5 year Bond rates from where we are now?
Instant Access accounts rates from where we are now?
Boe - Market says 1 further increase to 4.25%, followed by reductions beginning end of this year. Personally I think reductions will come earlier and quicker but so much remains to be seen. BOE rate increases in the next year?
1/2/3/4/5 year Bond rates from where we are now?
Instant Access accounts rates from where we are now?
Banks are already pricing longer term bonds at a significantly worsening margin compared to shorter terms. For 1yr Bonds given forward curve mentioned above it’s all downhill from here, swaps are fairly steady so it’ll be a gently diminishing trend over time. Longer terms, for the reasons mentioned above will start to flatten to the 1yr, and possibly drop below depending on how the base rate forecast plays out.
Only caveat is NS&I, recently moved to 4% on the 1yr, and can sometimes get involved to prop the market up. If that happens then it’s just a case of the market following.
Instant access rates to continue to creep up, again slightly depending on Base Rate. Expect to see that ratcheting continuing until we get past the 3.25% mark where it might slow. Toward the end of the year instant, notice and bond rates will all start to compress together. Obviously decreasing when Base Rste starts to turn. Similarly NS&I, they held up the market in 19/20 so may choose too again if they think banks are taking too much from the BoE reserve account.
May we’ll be proved wrong, but that’s my take.
Edited by Bowser87 on Sunday 12th February 08:33
Bowser87 said:
Boe - Market says 1 further increase to 4.25%, followed by reductions beginning end of this year. Personally I think reductions will come earlier and quicker but so much remains to be seen.
Banks are already pricing longer term bonds at a significantly worsening margin compared to shorter terms. For 1yr Bonds given forward curve mentioned above it’s all downhill from here, swaps are fairly steady so it’ll be a gently diminishing trend over time. Longer terms, for the reasons mentioned above will start to flatten to the 1yr, and possibly drop below depending on how the base rate forecast plays out.
Only caveat is NS&I, recently moved to 4% on the 1yr, and can sometimes get involved to prop the market up. If that happens then it’s just a case of the market following.
Instant access rates to continue to creep up, again slightly depending on Base Rate. Expect to see that ratcheting continuing until we get past the 3.25% mark where it might slow. Toward the end of the year instant, notice and bond rates will all start to compress together. Obviously decreasing when Base Rste starts to turn. Similarly NS&I, they held up the market in 19/20 so may choose too again if they think banks are taking too much from the BoE reserve account.
Other than thinking inflation isn't going to come down as fast as the experts are hoping for we are not far apart.Banks are already pricing longer term bonds at a significantly worsening margin compared to shorter terms. For 1yr Bonds given forward curve mentioned above it’s all downhill from here, swaps are fairly steady so it’ll be a gently diminishing trend over time. Longer terms, for the reasons mentioned above will start to flatten to the 1yr, and possibly drop below depending on how the base rate forecast plays out.
Only caveat is NS&I, recently moved to 4% on the 1yr, and can sometimes get involved to prop the market up. If that happens then it’s just a case of the market following.
Instant access rates to continue to creep up, again slightly depending on Base Rate. Expect to see that ratcheting continuing until we get past the 3.25% mark where it might slow. Toward the end of the year instant, notice and bond rates will all start to compress together. Obviously decreasing when Base Rste starts to turn. Similarly NS&I, they held up the market in 19/20 so may choose too again if they think banks are taking too much from the BoE reserve account.
With the cost of living and soon more and more mortgages forcing people to need higher wages just to live I can see inflation dragging on. Given that the current game plan seems to be to let spring/summer kick the fuel costs crisis can down the road I cannot see things being great next autumn when all this catches up.
I like your take much better, hopefully you are better at this than I am.
981Boxess said:
V1nce Fox said:
What's the max app online transfer per day out of Santander? just been denied 25k move.
ETA: just had to do 2x10 and 1x5 with code authentication.
£100k in any 24 hours, £25k max per transfer ETA: just had to do 2x10 and 1x5 with code authentication.
Just had this when trying to pay a builder from the E-Saver despite their account also being with Santander.
981Boxess said:
ther than thinking inflation isn't going to come down as fast as the experts are hoping for we are not far apart.
With the cost of living and soon more and more mortgages forcing people to need higher wages just to live I can see inflation dragging on. Given that the current game plan seems to be to let spring/summer kick the fuel costs crisis can down the road I cannot see things being great next autumn when all this catches up.
I like your take much better, hopefully you are better at this than I am.
Interesting that Shawbrook repriced their FRBs Friday/this morning with price dropping off going up the terms. First I’ve seen recently, but expect this to start to happen more so as mentioned. With the cost of living and soon more and more mortgages forcing people to need higher wages just to live I can see inflation dragging on. Given that the current game plan seems to be to let spring/summer kick the fuel costs crisis can down the road I cannot see things being great next autumn when all this catches up.
I like your take much better, hopefully you are better at this than I am.
Not sure what you do for work, but this is my job so would hope to be in the right ballpark!
bmwmike said:
Vanguard just announced they are lowering the amount of interest they pay on cash held in ISA/GIA/SIPP to "make sure the amount of interest you receive is fair and offers good value" - basically lowering it to 2.2% and creaming off anything higher for themselves, the greedy gits.
That’s pure doublespeak. V1nce Fox said:
bmwmike said:
Vanguard just announced they are lowering the amount of interest they pay on cash held in ISA/GIA/SIPP to "make sure the amount of interest you receive is fair and offers good value" - basically lowering it to 2.2% and creaming off anything higher for themselves, the greedy gits.
That’s pure doublespeak. bmwmike said:
Vanguard just announced they are lowering the amount of interest they pay on cash held in ISA/GIA/SIPP to "make sure the amount of interest you receive is fair and offers good value" - basically lowering it to 2.2% and creaming off anything higher for themselves, the greedy gits.
What was the rate before?leef44 said:
bmwmike said:
Vanguard just announced they are lowering the amount of interest they pay on cash held in ISA/GIA/SIPP to "make sure the amount of interest you receive is fair and offers good value" - basically lowering it to 2.2% and creaming off anything higher for themselves, the greedy gits.
What was the rate before?bmwmike said:
leef44 said:
bmwmike said:
Vanguard just announced they are lowering the amount of interest they pay on cash held in ISA/GIA/SIPP to "make sure the amount of interest you receive is fair and offers good value" - basically lowering it to 2.2% and creaming off anything higher for themselves, the greedy gits.
What was the rate before?Gassing Station | Finance | Top of Page | What's New | My Stuff