Fixed rate savings, now or wait?

[gareth h]

I cashed in some investments to bridge a house purchase in November (fortunately!). I now have a decent lump sum that has been sat in my current account for too long, I have put some into a account that is fixed for 6 months, and was going to open accounts for 12 and 24 months, but with interest rates forecast to increase would I be better to sit on my hands for a couple of months?
Any thoughts?

[Doddler]

I thought the same but if you wait for 2 months for the interest rates to go up in savings accounts you'll miss out on the rate being paid now. Put £20k in cash ISA now (ie al rayan) the rest in Marcus. Then load up the ISA next April at the higher rate.

[mike13]

I'm cashing in max holding of premium bonds in Dec, interest rates will be up again by then, so hopefully some good paying savings accounts available.

[alscar]

Rates will no doubt be increasing a few times over the next few months / year so waiting with all of it until whenever won’t maximise your return.Maybe put in various tranches as you go.
Marcus with instant access and bonus just upped to 1.8% with NSI ‘s green account up to 3% fixed but for 3 years so a fair few in between this.
Depends on how much you are talking about too.

[anonymous-user]

My cash is currently in a Marcus paying 1.8%. I am getting tempted to lock it away for 12 months in a fixed savings account, Monument Bank are currently offering 3.6%

After yesterdays interest rate rise, I am going to wait a month or two in the hope the rate increases to 4%.

[skeeterm5]

You are waiting for an uplift of 0.4%.

Assume you have £100k in Marcus, that is £150 pm at current rates

Putting in now gets you £300 per month interest., an uplift of £150 pm

Waiting 2 months thus “costs” you £300 over those 2 months

Once invested at 4% then after 12 months you have £400 more interest than throwing it all in now. So waiting gets you £400 a year.

It is marginal to wait, unless the numbers move faster and/or higher.

All of course subject to any tax implications.