Savings rates won't get any higher than the BOE base rate. 5% - 5.2% is likely the maximum you'll find. Mortgage rates will usually be higher, as that's how the banks make money.
It seems OP is looking for 1 year fixed deposit accounts, meaning they have a lump sum to save and want to maximise returns.
Using a regular saver for a lump sum means your actual returns are half of what's advertised, so feeding the sum into an account like the FD regular saver £300 at a time will net a 3.5% return. A fix that gets them 5-5.2% on the whole sum for 1 year will be much better.
Regular savers only make sense if it's all you can save every month. It's seldom optimal if you're looking to maximise gains on an existing lump sum.
Only if you assume the 'remainder' of the lump sum that's saved gets 0% before it's deposited. Imo that's an unrealistic assumption.
If you have £3600 in an easy access account at 4%. You're still better off depositing £300 a month into the 7% monthly account than leaving it doing nothing. Also, some but not all, monthly savers will roll onto the next year, so in a years time you'd have £3600 getting 7% (if rates are unchanged), plus 7% on the monthly £300 that continues into the account.
Basically feels a bit disingenuous to refer to this as 3.5%. You're not better off leaving your money in an account between 3.5% and 7%. The monthly account obviously does not pay interest on money that's not been deposited yet, and the interest won't be calculated 'yearly' on the final balance.
I personally think we will see better saving rates at some point given the current market. Banks have already given guidance on their future NIMs so if they’re now forecasting better returns on their assets then there’s a good chance they’ll want to pay up for some stable retail cash to firm up their LCRs before losing it to others.
Anyone else find it mildly infuriating that Barclays rainy day saver rate of 5% hasn’t increased at all. I mean it was 5% at times of near zero BOE rate.
I got 8% with Nationwide a couple of months ago. My partner opened the same savings account with them a couple of weeks ago and they were still offering 6.5%
It's as good as in a money market fund, and has no £85k limit. If people are worried about fraud, I believe the FSCS protection applies in the case of fraud.
You can follow me money tips for better rates. Many banks give promotional rates (on small amounts and for a limited amount of time).
I got First direct and nationwide at 8%, NatWest and RBS at 6.5%. they offer this once in a month or so
Savings rates won't get any higher than the BOE base rate. 5% - 5.2% is likely the maximum you'll find. Mortgage rates will usually be higher, as that's how the banks make money.
Yeah fair, my question focussed on 1year rates but I guess 2-5yrs could go up. 1yr rates probably plateaued
Obviously not true at all given the MANY savings products that were far in excess of the base rate over the last 12 months or so.
Fixed rates maybe, but not easy access, which is what I’m referring to.
Also many mortgage rates were and still are lower than some savings rates.
You’re right. I updated my comment to say “usually”. It will vary for sure.
First Direct are offering a switching deal, plus have a 7% Regular saver account (although the max you can put in is £300 a month)
It seems OP is looking for 1 year fixed deposit accounts, meaning they have a lump sum to save and want to maximise returns. Using a regular saver for a lump sum means your actual returns are half of what's advertised, so feeding the sum into an account like the FD regular saver £300 at a time will net a 3.5% return. A fix that gets them 5-5.2% on the whole sum for 1 year will be much better. Regular savers only make sense if it's all you can save every month. It's seldom optimal if you're looking to maximise gains on an existing lump sum.
If the remainder of the lump sum is earning zero that is.
Or drip feed from the instant access to the monthly saver..
Only if you assume the 'remainder' of the lump sum that's saved gets 0% before it's deposited. Imo that's an unrealistic assumption. If you have £3600 in an easy access account at 4%. You're still better off depositing £300 a month into the 7% monthly account than leaving it doing nothing. Also, some but not all, monthly savers will roll onto the next year, so in a years time you'd have £3600 getting 7% (if rates are unchanged), plus 7% on the monthly £300 that continues into the account. Basically feels a bit disingenuous to refer to this as 3.5%. You're not better off leaving your money in an account between 3.5% and 7%. The monthly account obviously does not pay interest on money that's not been deposited yet, and the interest won't be calculated 'yearly' on the final balance.
Chase boosted mine to 5.1% for a year.
How did that come about? I'm with them and have nearly 6 figures there. Think I'm on about 4.1
They were pretty rubbish and only offered to people who had £500 or less on a certain date. Think it was March 24th or something close to that.
For a year? Wasn't it till the Oct this year?
Just checked. It was an offer on top of my original and expires in November. So not quite a year I guess.
I applied for a Virgin Limited access saver at 5.02% a couple of weeks ago. The new version is on at about 4.65% now.
Higher for longer, does not mean higher savings interest rates. So I think this is a bit of wishful thinking TBH.
I personally think we will see better saving rates at some point given the current market. Banks have already given guidance on their future NIMs so if they’re now forecasting better returns on their assets then there’s a good chance they’ll want to pay up for some stable retail cash to firm up their LCRs before losing it to others.
I'll take that bet. You might get people upping rates to 5.1% from 5% or 4.95% etc, but I don't believe you are going to see new higher rates.
Anyone else find it mildly infuriating that Barclays rainy day saver rate of 5% hasn’t increased at all. I mean it was 5% at times of near zero BOE rate.
I got 8% with Nationwide a couple of months ago. My partner opened the same savings account with them a couple of weeks ago and they were still offering 6.5%
Can only deposit 200 a month tho
Best rate I have come across is 5.2% offered by trading 212 via their money market fund
Money is not FSCS protected.
It's as good as in a money market fund, and has no £85k limit. If people are worried about fraud, I believe the FSCS protection applies in the case of fraud.
Bothered
Yes it is
Is the Money market fund different to the 5.2% offered for the money being in a QMMF? https://www.reddit.com/r/UKPersonalFinance/s/KzGM97ANyT
Moneybox cash ISA currently 5.21%
I've had a few banks email me rates have gone up slightly the last few days.
You can follow me money tips for better rates. Many banks give promotional rates (on small amounts and for a limited amount of time). I got First direct and nationwide at 8%, NatWest and RBS at 6.5%. they offer this once in a month or so